Kochi (Kerala) [India], Feb 20 (ANI): Consumer electricals and electronics company V-Guard Industries has said that its Promoter and Chairman Emeritus Kochouseph Chittilappilly offloaded 40 lakh shares to promote social causes.
"The sale of 40 lakh shares of V-Guard Industries was to raise funds for two initiatives I have undertaken as part of my commitment to social causes," said Chittilappilly in a statement.
On Friday evening, shares of V-Gaurd closed on BSE at Rs 233.80 per piece, up by 2.1 per cent from their previous close.
"K Chittilappilly Foundation (KCF), a section 8 company formed by me to undertake charitable and philanthropic activities, had decided to execute a signature project named 'Chittilappilly Square' as intimated during my earlier stake sale in December 2019. The work of same is in progress and part of the proceeds of stake sale will be utilised for it," he said.
Chittilappilly also said that KCF had been working over the years for entrepreneurial development.
"With a vision to expand this initiative by assisting entrepreneurs who face a shortage of funds to scale up their businesses, by providing credit funds at reasonable rates and terms, we have incorporated a company named K Chittilappilly Capital which has applied for a certificate of registration as a non-banking finance company from the Reserve Bank of India."
Part of the proceeds of stake sale will also be utilised for funding this initiative, he said.
For the quarter ended December 31, 2020, the company's consolidated net revenue totalled Rs 835 crore, up by 32 per cent from Rs 632 crore in the corresponding period of the previous year. The profit after tax moved up by 77 per cent to Rs 78.25 crore from Rs 44.24 crore in Q3 FY20.
V-Guard follows an asset-light model, outsourcing nearly 58 per cent of its products from a range of vendors. It has tie-ups with small scale industries and self-help groups spread across southern India.
The blended manufacturing policy helps optimise capital expenditure and working capital requirements.