BCCL picks up 5.27% in Rajesh Exports

Televisionpoint.com Team
Rajesh Exports on Thursday said Bennett, Coleman and Co (BCCL) will acquire a 5.27% stake in the company in an allcash-deal.

The company will issue 19.48 lakh equity shares to BCCL, the publisher of The Economic Times and the Times of India, on a preferential basis, subject to shareholder approval, Rajesh Exports said in a statement. The shares to be issued would constitute 5.27% of the company’s post issue equity, it added.

These equity shares shall be issued subject to the approval of members of the company at the Extra Ordinary General Meeting (EGM) to be held on October 31, 2005.

Rajesh Exports Chairman Rajesh Mehta said, "The company is proposing to undertake a nation-wide brand building exercise in view of the future plans of the company. The proceeds of the proposed issue would be utilised towards the brand-building exercise."

He said the company was pleased to receive a proposal from a prestigious corporate like BCCL for equity participation. "The participation of BCCL in the company’s equity would help Rajesh Exports to establish its jewellery brand across the country," he said.

The company has also signed a supply agreement with Minerals and Metals Trading Corporation (MMTC). The agreement is for the supply for 22 carat high-quality gold jewellery for onward retail sales by MMTC.