Shiv Nadar to infuse fresh Rs 25 cr. equity into Network Ltd.

Network Ltd., a Shiv Nadar promoted company,

has decided to infuse fresh equity of 55.75 lakh shares valued at Rs 25

crore through a preferential issue. This was decided, so as to repay its

debt to the tune of Rs 40 crore.

Network Ltd. Company Secretary S. Rajaraman said that the issue would

be priced at a premium of Rs 35 per share, which would be funded by the

promoter and an investment company. The issue would be priced at Rs 45

with the par value pegged at Rs 10

Following the preferential issue the promoters stake in the company

will increase from 64 per cent to 75 per cent, said Mr Rajaraman. The

company has already received the in-principle approval from the board and

would seek shareholders approval at the Annual General Meeting on

September 23. The company is expected to effect the fresh infusion of

equity capital in the second half of the current year.

Network has been reporting losses for the past two years. For the first

quarter ended June 30, 1999, total income stood at Rs 0.09 crore and loss

was Rs 1.5 crore. The paid-up equity capital stands at Rs 6.44 crore.

Network has stopped all its manufacturing activities. The company was in

the business of manufacturing office equipment such as electronic

typewriters and faxes. However, the availability of low-cost computers and

multi-lingual software has made the product obsolete, said Mr Rajaraman.