Telco plans rights issue

JAN 16: Tata Engineering Telco has planned to come out with a rights issue to finance its business plans. The board of the company will be meeting on January 31 to consider a rights issue of convertible or non-convertible debentures or any other equity related instruments.

Telco had made huge losses in the first six months of the current year. The company recently announced a technical tie-up with Peugeot of France to introduce a new model. Telco will roll out three new cars in the domestic market by 2003, including a three-box version of a premium mid-size car in pact with European automaker Peugeot Citreon, its chairman Ratan Tata had said on Monday.

ESSAR RIGHTS ISSUE: THE board of Essar Steel will consider a rights issue at its board meeting on January 23. In a statement, the company said it had received the necessary approval for the proposed rights issue from the shareholders and the financial institutions.

The rights issue is part of the restructuring programme approved by the FIs recently. The details of the rights offer are yet to be finalised at the board meet. The rights issue will lead to a favourable change in the debt-equity ratio, analysts said.