Tanfac plans on preferential issue quashed

CHENNAI, Aug 14: Amid ear-shattering accusations, pandemonium reigned supreme as shareholders of the Aditya Birla group company Tanfac Industries Limited successfully thwarted the proposed preferential allotment to the promoters.

The company had sought the approval of shareholders through a special resolution for the allotment of 50 lakh shares at a premium of Rs 10 per share to the Hindalco, Grasim and Tidco which have jointly promoted Tanfac. Shareholders quashed the proposal and, instead, demanded a rights issue.

The proceeds of the proposed issue were to have part-funded the Rs 30 crore expansion plan of Tanfac to manufacture organic fluorine chemicals dichlorofluoro benzene, acetophene.