Kalamazoo Systems PLC, which announced a Rs.1.5 billion rights issue this week, yesterday said it was planning to go for a share split subject to shareholder approval.
Kalamazoo’s current number of shares in issue stands at 50,000 and subsequent to the proposed rights issue it will go up to 3,050,000. The rights are issued at a price Rs.520 per share. The company yesterday proposed to subdivide the shares at a proportion of every one voting share into 100 ordinary voting shares, thereby increasing the total number of shares in issue to 305 million.
The current stated capital of the company stands at Rs.500,000.
Kalamazoo expects to utilize the rights issue proceeds to “make an equity investment in Renuka Development Limited to finance the working capital and future investments.”
Renuka Holdings PLC this July acquired 68.65 percent of Kalamazoo Systems PLC from high-net-worth investor Nimal Perera in a Rs.490 million deal. Following the obligatory mandatory offer, Renuka Holdings said it held just over 70 percent of the issued shares of Kalamazoo PLC.
In the meantime, Kalamazoo on Tuesday announced a new director board headed by Shamindra Rajiyah as its Executive Chairman.