Mumbai, Mar 5 : Sintercom India said that it has completed the raising of funds on a preferential private placement basis in the form of equity shares and compulsory convertible debentures (CCDs) from one of its promoters Miba Sinter Holding GmbH & CO KG (Miba), for an aggregate amount of approximately Rs 222 million, after taking the necessary approvals from the Board, shareholders and other regulatory bodies.
The proceeds of the preferential issue will be used to help facilitate the Company with additional funds necessary for acquisition of capital goods and machinery, operation and management of the Company with approximately Rs 90 million earmarked towards acquisition of capital machinery.
Announcing on the completion of the preferential issue, Mr Hari Nair, Chairman, Sintercom India Ltd. said, ”The additional investment by Miba in our company, emphasises the confidence by our partner in the strength and future growth potential of our company. The funds will help manage the immediate working capital requirements but also look at larger and new business opportunities not only in the domestic markets but also globally.
The increasing importance of India as a manufacturing partner in technologically advanced products is clearly visible from the current market trends. We expect to draw on the experience and expertise of Miba to bring in new technologies and business opportunities to Sintercom resulting in long term growth and value creation for its shareholders.”