Mumbai, India based Everest Kanto has sold a 9.7 per cent stake to a unit of CLSA Private Equity management Ltd. through a preferential allotment of shares.

The company will issue 18.96 lakh equity shares to Brightwill Ltd, for Rs92 Crore on a preferential basis.

According to Everest Kanto\\$quot;s board of directors, the preferential allotment would be subject to a lock-in period of one year in accordance with SEBI guidelines and would result in additional issues of 9.72 per cent shares of the enhanced equity share capital, it added.

The proceeds of the preferential issue will be used to part-fund the Everest Kanto's ongoing expansion plans in China, Dubai and India. The company will be convening an Extraordinary General Meeting (EGM) on 20th October for obtaining shareholders\\$quot; approval for the preferential issue.

The company has set-up a new manufacturing facility at Dubai to cater to the demand potential from Middle-East, CIS countries and South Asia. The production at the new unit is expected to commence in the third quarter of the current financial year.

Everest Kanto has proposed to sell all the fixed assets of the unit to EKC International FZE. On completion of the expansion plan, the total capacity in Dubai will be 2.00 lakh units.

Everest Kanto recently commissioned its greenfield plant at Gandhidham in Gujarat with a capacity of 340,000 cylinders per year. It has formed a separate wholly owned subsidiary in China, EKC Industries (Tianjin) Co. Ltd to manufacture high pressure gas cylinders and other allied products. Everest Kanto plans to invest $50m in the China project.

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Everest Kanto Cylinders