Mumbai, July 20: Birla Global Finance Ltd (BGFL), the financial services flagship of the AV Birla group, will issue one crore preferential shares at Rs 40 apiece to the promoters, aggregating Rs 40 crore.

TGC Investment and Trade Pvt Ltd, the promoter group company, will subscribe to the issue. TGC will also make an open offer for 20 per cent of the post-preferential allotment equity capital of Rs 25.7 crore at Rs 40 per share, in keeping with the regulations of the Sebi takeover code, BGFL informed the stock exchanges today.

The proceeds of the issue will be used for the company’s fund-based activities and to enhance the net-owned funds, a BGFL statement said. After the proposed issue, the networth of the company will increase to Rs 98.91 crore from Rs 58.91 crore.

The offer-price range represents a premium over the average traded prices of the shares on the bourses.