Apple’s Taiwanese supplier Wistron Infocomm Manufacturing India is planning capital infusion and has increased the authorized share capital of the company from Rs 185 crore to Rs 3,000 crore that signals a fresh round of capital infusion into its India unit.
Wistron India, at its EGM recently, approved the altered capital clause wherein the authorized share capital of Rs 3,000 crore is divided in 300-crore equity shares with face value of Rs 10, showed a recent Registrar of Companies (RoC) filing.
Wistron’s wholly-owned subsidiary SMS Infocomm Singapore has been allocated 10.3 crore shares worth Rs 102.9 crore. An email sent to Wistron on the enhanced authorized share capital didn’t elicit a response.
Wistron India, the original equipment manufacturer (OEM) and original design manufacturer (ODM) major, focuses on a product portfolio, including notebook, desktop, storage systems, networking, communication products, LCD TV, smartphone and handheld devices.
Wistron is planning to invest Rs 3,000 crore in Narasapura industrial area in Kolar district spread on the 43-acre land. This will be one of the biggest projects of its kind in the country.
KR Girish, founder of tax advisory firm KR Girish & Associates stated, “It’s strange a company injects so much as direct equity rather than equity and share premium. In share premium, there is no registration fee and stamp duty. In authorized capital, companies incur heavy stamp duty.”