11 Dec 07 BOC India plans Preferential issue of shares to Linde AG
BOC India has informed the stock exchanges that the board of BOC India has approved a Preferential issue of shares to BOC India’s German promoter, Linde AG. As per the announcement made, a preferential allotment of 3.62 crore shares will be made to Linde AG. The preferential allotment price has been fixed at Rs. 165 per share. Preferential issue of shares is generally considered to be bad for the minority shareholders since their stake will go down. If the intention was to raise capital, BOC India could have gone with a rights issue instead of preferential issue. Preferential issue is against the shareholders Preemptive Right and hence should be avoided by the company where ever possible.
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