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Deutsche Bank to pick 4.76% stake in ailing BPL

Global financial major Deutsche Bank is all set to pick 4.76% stake in the consumer electronics company BPL Ltd.

On Friday, the company's board sanctioned a proposal to make preferential allotment of 24,25,500 equity shares and/ or convertible securities to Deutsche Bank AG (DB) and/ or their nominees and affiliates in terms of applicable SEBI guidelines.

According to official sources, the funds will be utilized as long-term working capital requirement of the company's healthcare management solutions business and for other general corporate purposes.

The BPL healthcare management solutions division has been in existence for over three decades and manufactures a range of medical equipment.

Further, the BPL board has also approved a qualified institutional placement (QIP) and authorized its chairman & managing director to decide the size and timing of the issue.

The deal is expected to be completed after getting an approval during the company's extraordinary general meeting.

As per the view of market analysts, the latest investment from the Deutsche Group seems a much-needed helpline for the cash-poor BPL, which is going through a painful restructuring after having a debt of Rs 1,400 crore.

Last month Japan's Sanyo Electric Company pulled out of its loss-making 4-year joint venture with BPL in India producing cathode-ray tube televisions.

The company's stock price closed on Friday at Rs 30.95, down 10% compared to previous day close. The scrip has lost over 70% value in past 9 months.

Source: Top News

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