Kolkata, Aug 28: Rallis India, a Tata Enterprise, has decided to raise up to Rs 188 crore to correct the imbalance in its debt-equity ratio. "At present, on account of low equity base, there is an imbalance in the company's debt equity ratio, which needs to be corrected," a Rallis official said.
The company's debt (secured - Rs 147.50 crore and unsecured - Rs 205.59 crore) as on March, 2003 stood at over Rs 353.09 crore as against authorised equity capital base of only Rs 70 crore, of which only Rs 11.98 crore was subscribed.
The official said agrochemicals industry benchmarks in India indicated that, specifically for a company primarily engaged in manufacturing and marketing of insecticides, the capital employed normally does not exceed 70 per cent of the sales turnover.

"Within this overall parameter, the company proposes to correct the present imbalance in the capital structure by issue of appropriate long-term securities to the extent of Rs 188 crore to existing shareholders or otherwise," he said.
A special resolution seeking permission of shareholders to raise the amount through issue of securities to institutions, NRIs, Indian Public Companies or others, including individuals, would be moved at the company's annual general meeting on September 18. Bureau Report