Proceeds to fund social activities and ‘Chittilappilly Square’ project
KOCHI: Kochouseph Chittilappilly (seen in the picture), the founder promoter of V-Guard Industries Ltd, has raised about Rs110 crore on Tuesday by selling 51.20 lakh shares, constituting 1.2 per cent of the total paid-up capital of the company, in the open market.
A company statement said the proceeds from the stake sale would be utilised to close a short-term loan taken for the land purchase made for the implementation of an ambitious social project called ‘Chittilappilly Square’ and to fund other on-going social activities.
Kochouseph’s shareholding in the company as of March 31, 2019 was 27.72 per cent in different capacities, including as managing trustees of K Chittilappilly Trust and Arav Chittilappilly Trust.
The Tuesday’s divestment may have reduced his holding to about 26.5 per cent (assuming that his holding didn’t change much since March 31, 2019).
The promoters’ shareholding in the company as of March 31, 2019 was at 64.13 per cent. A statement from the company said the share sale was to raise funds for a social project, which is in implementation in Kochi.
The statement explained that Kochouseph Chittilappilly, as part of his social commitment, had in the year 2012 formed K Chittilappilly Foundation (KCF), a Section 8 Company, to undertake social initiatives like providing assistance for medical treatment, educational scholarships, house building support, women entrepreneur development etc., to deserving persons in the society. KCF was also in the forefront to help rebuild houses damaged in the recent floods in Kerala state.
Apart from taking up such regular philanthropic activities, the foundation has plans to execute a signature project of a large dimension, and KCF has formulated plans for “Chittilappilly Square (CS)”, a social project to ‘provide lungs’ to the city of Kochi.
“CS has been envisioned as the hub for all social activities of KCF, with a vast public park with garden, walking and jogging tracks, sports and games areas, yoga and health club, amphitheatres, auditorium and multiple halls for social gatherings, a heritage and cultural museum, exhibition centre, library & reading room, model organic farm etc.
The project is expected to provide an activity centre for Kochi City’s inhabitants, who hardly have such locations to unwind and relax, the company statement noted.
KCF has already bought land admeasuring 11 acres, off the main Sea Port- Airport road in the city, close to the Info Park, Smart City and SEPZ, the IT hub of City. Basic works like developing the land, garden etc. are in progress.