The shareholders of International Industries Limited (INIL) on Tuesday authorized INIL to issue a guarantee to ensure that Chinoy Engineering & Construction (Private) Limited (CECL) performs its obligations under the contract with Reko Diq Mining Company Limited with joint and several liability with associated companies Pakistan Cables Limited and International Steels Limited.
According to the stock filing shared with the main bourse today, INIL has been further authorized to subscribe 4.845 million ordinary shares with a par value of Rs. 10 each making a total of Rs. 48.45 million or 17 percent of its post-issuance paid-up capital of CECL by subscribing to such shares of CECL.
The company is now “empowered to take all such actions including, but not limited to, filing the requisite applications for seeking the permission of the SECP, if any, and/or any other regulatory approvals that may be required under the applicable laws for the issuance of the ordinary shares”, the stock filing added.
INIL will also invest in CECL by way of extending short-term loans up to Rs. 300 million at a markup of KIBOR +3 percent if needed.
The company will further issue a Corporate Guarantee in favor of Habib Bank Limited for CECL to secure financing of up to Rs. 1.5 billion.
INIL is engaged in the business of manufacturing and marketing of galvanized steel pipes, precision steel tubes, API line pipes, and polymer pipes & fittings.
At the time of filing, its scrip at the bourse was Rs. 180.5, up 0.32 percent or Rs. 0.57 with over 325,000 shares on Tuesday.
