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USD100mn capital infusion into ETI Finance approved

Jan 29, 2016 (LBO) – The Central Bank has approved a proposal to infuse 100 million US dollars into the share capital of ETI Finance, Swarnamahal Financial Services said in a stock exchange filing. This capital injection reportedly from institutional investors from Australia is mandated to be completed by 28 February 2016.
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ETI Finance is the parent company holding 90 percent of shares of listed Swarnamahal Financial Services. Falling gold prices and mismanagement led the Group to restructure their assets last year.
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Conditions stipulated by the Central Bank in their approval: a. Remitting USD 17mn in cash through banking channels on or before 05.
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02.2016 b. Remitting the balance USD 83mn in cash by end of February 2016 c. Refraining from utilizing funds so remitted for any purpose other than the proposed capital infusion to ETIFL and from transferring shares of ETIF, without prior approval of the Monetary Board.
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d Submitting documentary evidence for the receipt of each of above inward remittances at identified dates e. Non compliance of above conditions will result in declining the proposed restructuring plan
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