Ortel to issue 25 lakh shares to promoters for Rs 8.75 cr

MUMBAI: The board of directors of multi system operator (MSO) Ortel Communications has approved the issue of equity shares to promoter/promoter group entities not exceeding Rs 8.75 crore.

The company has proposed to issue 25 lakh equity shares at an issue price of Rs 35 per share to the promoters on preferential basis for an aggregate amount of Rs 8.75 crore.

Further, the board has also approved the issue of 9% cumulative, non-convertible, redeemable preference shares for an amount not exceeding Rs 10 crore by way of private placement for a period of five years.

It has also approved the acceptance of fresh inter-corporate loan of Rs 8 crore at 9% per annum for a period of five years.

The board has also convened an Extra Ordinary General meeting of the company on 9 April to approve the issue of equity shares and redeemable preference shares.

Meanwhile, the MSO has incorporated a wholly-owned subsidiary in the name of Ortel Broadband on 28 February. The authorised capital is Rs 10 lakh while the paid up capital is Rs 1 lakh.

Ortel MD Jagi Mangat Panda has been appointed as Director on the board of Ortel Broadband. The company will house the broadband business of Ortel. The company holds 99.94% stake in Ortel Broadband while the rest is held by six nominees on behalf of Ortel Communications.

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