Global private equity giant Actis is set to go ahead with the proposed Rs 35-crore rights issue to fund expansion of the retail firm Nilgiri’s.
But a member of the promoter family of Nilgiri Dairy said the CLB judge has ordered an interim stay till February 5 in respect of allotment of rights issue.
The proposed rights issue had run into dispute after the family shareholders of Nilgiri’s decided to move the Company Law Board (CLB) to block the rights issue.
According to an Actis spokesperson, the CLB judge had given clearance to the rights issue on Friday. “The judge has given his clearance for the rights issue. Nilgiri’s is in dire needs of funds to stay afloat and by tomorrow evening Actis will be bringing in the required money,” said the spokesperson.
However, denying this, Mr Prabhu Ramachandran, Director and member of the promoter family of Nilgiri Dairy Farm Pvt Ltd, told Business Line that the CLB judge has ordered an interim stay till February 5 in respect of allotment of rights issue.
Actis has a 65 per cent stake in The Nilgiri Dairy farm by investing Rs 300 crore in the back-end operations of the retail chain in 2006. The Actis-led management had got the approval from the Nilgiri’s board to go ahead with the Rs 35-crore rights issue to fund the expansion in November 2009.
Actis had previously sold three hospitality properties belonging to the Nilgiri’s to the Chennai-based Sabari Hotels, and the management decided to retain and invest close to Rs 100 crore in operations of the company.
