ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Cotton-Experts Proved Wrong

of Rs 10 each at a premium of Rs 7.50 per share for every debenture held. Fibreglass is utilising its debenture issue for dilution of its foreign holding from 50.38 per cent to 40 per cent, Other innovations to attract investors will no doubt follow. Non-resident Indians abroad have evinced interest in some of these issues and, depending on the publicity and groundwork done, substantial amounts from this source could be expected to be tapped. (It is believed that TELCO bonds attracted about Rs 12 crore from non-resident Indians.) Given the boom conditions in the share market and the sharp capital appreciation in the case of most shares, it is to be expected that companies with good operating records will capitalise on the opportunity to raise funds. The financial institutions are in any case said to be facing a resources problem. By resorting to public issues of debentures with attractive conversion terms and thus bypassing the financial institutions, the larger and established companies also hope to avoid procedural delays, imposition of onerous conditions, etc.

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