Flower exporter Karuturi Global is raising Rs 290 crore from its promoter Ramakrishna Karuturi and a consortium of foreign institutional investors (FIIs). Both promoter and FIIs are together
subscribing 241.5 million warrants of Rs 12 each, which would converted into one equity share. A group of four FIIs, which include hedge fund Monsoon Capital, are pumping in Rs 248.64 crore in the firm. The rest is being invested by the promoter, Ramakrishna Karuturi. The company is now seeking shareholders approval through a postal ballot.
The four FIIs investing in Karuturi will together hold a 29.82% stake in the post-issued capital. They include Emerging India Focus Fund (8.64%), India Focus Cardinal Fund (14.4%), Elara India Opportunities (3.91%) and Monsoon Capital (2.87%). The warrants can be converted
within 18 months, and an amount Rs 3 per warrant would have to paid at the time of warrant allotment. The rest of the amount of Rs 9 would be paid when subscribing each equity share, which would have a lock-in of one year.
Karuturi Global, which worlds largest producer of roses, has also sought permission to raise another $100 million or Rs 500 crore. Karuturi Global Ltd is engaged in three businesses – floriculture, gherkins and information technology. The company reported revenues of Rs 440 crore and a net profit of Rs 124 crore for the fiscal ended March 2009. The promoter group presently controls a little over 78% in Karuturi, which has a debt of around Rs 120 crore on an asset base of Rs 700 crore.