Pune, July 12: Thermax, the engineering and environment major, plans to reward its shareholders with the issue of 6% redeemable preference shares (RPS), to be issued in the ratio of two RPS for every one equity share held. They can be redeemed after a maximum period of three years from the date of issue with the payout not exceeding Rs 47.7 crore.

“We propose to issue redeemable preference shares to capitalise reserves and surpluses of the company and to benefit shareholders,” said Thermax executive vice-president and CFO Amitabha Mukhopadhyay said.
He pointed out that at the end of the three years, or earlier, the cash will go away to the shareholders, when these are redeemed. The company also proposes to introduce an enabling resolution allowing it to go in for a share buy-back since the company had not changed its articles of association in several years. “This is only an enabling provision being introduced, since the articles of association of the company have not been changed in a long time. There is no move at present to go in for a share buy-back,” Mukhopadhayay explained. Bureau Report