Billionaire Shiv Nadar-led promoter group increased its stake in HCL Infosystems Ltd. by subscribing to about 90 percent of the hardware distributor and software services provider's Rs 500-crore rights issue aimed at paring debt.
The promoter shareholding rose by 12.5 percent to 62.89 percent after the Rs 445-crore fund infusion, the company said in exchanging filings. It raised funds at Rs 47 a piece via the rights issue, lower than the current market price. A low discount to market price for issue partly explains low participation from public shareholders, which subscribed to only 11 percent of the offer compared to about half the shares on offer. The promoters stepped in to make up the shortfall.
The funds raised would be largely used to retire Rs 400 crore debt, according to the rights offer document. The rest would be used for general corporate purposes. The company recently bagged distribution rights in India for Apple's products, including iPhones, and would continue to focus on key business verticals like IT services, solutions and distribution.
Promoters are exempted from the mandatory open offer if they buy more than 5 percent share in a rights issue. Otherwise, acquisition of 5 percent or more in one financial year triggers the open offer to acquire 26 percent more stake from public shareholders.
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