Faced with BSE’s refusal to list shares of Binani Zinc, the Kolkata-based Binani group has decided to offer shares of Binani Cement Ltd (BCL) and Binani Zinc Ltd (BZL) to the shareholders of Binani Industries Ltd. Both Binani Cement and Binani Zinc are subsidiaries of Binani Industries Ltd.
Sources close to the company said that the Binani group had tried to list Binani Zinc Ltd at BSE in April 2006 where Binani Industries was listed.
BSE rejected the request of Binani Zinc Ltd as the company did not have the requisite minimum public holding of 10 per cent.
The Binani move upset shareholders here in Kolkata, who pointed out that Binani Group was seeking to raise capital again from the market through the subsidiaries by listing it.
"The company itself said in the application to the High Court that both BCL and BZL need to raise resources for growth by way of private and public investment," one shareholder said after the company’s extraordinary general meeting in Kolkata.
Binani group came out with a public offering of Rs 230 crore for Binani Zinc Ltd in February 1995. The main reason given for the public issue then was diversification into cement business. After the public issue, Binani Zinc was rechristened as Binani Industries Ltd in April 1996. Later on, the company hived off the cement division into Binani Cement Ltd in 2000.