Linde will infuse Rs 598 crore into its subsidiary BOC India to meet bulk of the latter’s fund requirement for ongoing projects by 2008.
The German firm will bring in the capital through the preferential allotment route. In the process, Linde will consolidate its shareholding in BOC India to about 74% from the present 54.80%.
BOC India will supply gases to JSW Steel for its expansion programme at Bellary. It has also won orders from SAIL amounting to Rs 318 crore for setting up two air separation units at Rourkela Steel Plant and IISCo Steel Plant, among others. Incidentally, the BOC India board on Tuesday decided to allot around 3.62 crore equity shares at Rs 165 apiece to its parent company on a preferential basis. On Tuesday, the company’s stock touched an intra-day high of Rs 187 and an intra-day low of Rs 159.80 before closing at Rs 174.95 on the Bombay Stock Exchange (BSE).
The proposed preferential issue is subject to various conditions, including obtaining necessary approvals from the shareholders and regulatory authorities.