Mandhana, Senior Vice-President and CFO of the company, told Business Line that HNGIL also decided to refund the share application money of around Rs 14 crore to the respective applicants.
The HNGIL board last year had approved the proposed preferential issue after it obtained permission from shareholders at an EGM.
Mandhana said the cancellation of proposed issue followed an alternative plan for fund-raising. “We have raised the required fund from the proceeds of the stake sale in a subsidiary,” the official added.
The company needed the fund for the tail-end financing of its expansion project involving two furnaces – one at Naidupeta in Andhra Pradesh and the other at Nasik in Maharashtra.
This month HGNIL, country’s largest container glass manufacturer, signed share sale agreement with Trakya Cam Sanyii AS of Turkey and diluted its holding in HNG Float Glass Ltd.