Calcutta, July 28: McLeod Russel India Limited (MRIL) has sold 25 lakh shares at Rs 100 each to the Singapore-based FII, Capital International Limited.

The share sale has been concluded roughly on the basis of the current market price. The McLeod scrip closed at Rs 100.05 on the Bombay Stock Exchange on Friday against Thursday’s price of Rs 99.

After the sale of this 2.5 per cent stake, the promoters’ holding in the company has come down to 52.88 per cent from 55.42 per cent.

After the amalgamation of Williamson Tea Assam with McLeod Russel, the promoters’ holding had risen to 55.42 per cent.

“Of the 25 lakh shares sold, 16.63 lakh were held by MRIL under a trust and the balance 8.37 lakh shares were sold out of Williamson Magor Holdings,” said Kamal Baheti, director of MRIL.

The total amount of Rs 25 crore would be used to retire some of the company’s debt, which was Rs 475 crore as on March 31, 2006. The yearly interest cost of the company is Rs 45 crore.

The company plans to repay Rs 200 crore this fiscal.

This sale along with the approval to raise $30 million (Rs 138 crore approximately) through GDR or private placement of equity shares and internal accruals would amount to around Rs 200 crore, Baheti said.

MRIL had borrowed Rs 180 crore from ICICI Bank to be repaid in 10 years for the acquisition of Williamson Tea and Rs 18 crore from IL&FS for buying out the Doom Dooma gardens from HLL.

Doom Dooma was acquired in January this year for Rs 70 crore, of which MRIL would be paying back Rs 51 crore to HLL in the next three years.

In keeping with its earlier reported strategy of servicing debt through sale of investments in companies like McNally Bharat and Kilburn Chemicals, MRIL had also used Rs 8 crore from the sale of shares in Eveready and India Foils to reduce the debt burden.

McLeod expects overall exports this fiscal to be 25 million kg compared with 22 million kg last fiscal. For the first quarter this year, exports more than doubled to 19 lakh kg from 6 lakh kg in the same period last year.

Increased exports to Pakistan and the UK were the main reasons behind the spurt.

Tea prices for the first quarter rose to Rs 91.42 per kg from Rs 82.81 per kg for the same quarter last year, an increase of Rs 8.61 per kg.

Total income of Williamson Magor jumped from Rs 2 crore to Rs 24.57 crore for the quarter ended June 30, 2006.