Stone India updates on Preferential Issue of convertible warrants

Stone India Ltd has announced that the Company had offered for subscription by way of preferential allotment 15,00,000 warrants on October 04, 2005 - each warrant to be converted into one fully paid equity share of Rs 10/- each at a price of Rs 97/- per share. In terms of the said issue, an amount equal to 10% of the said price was paid by the warrant holders. The option to acquire the equity shares arising out of conversion of the warrants was to be exercised by April 03, 2007 by the warrant holders.

In view of the satisfactory performance of the Company, the need for raising of funds was discussed with the warrant holders. Since the Company was capable of meeting the funds required for the project by and large through internal accruals, the holders of 14,32,500 warrants have not exercised their option by the stipulated time. The holders of 67,500 warrants have exercised their option for conversion by making payment of Rs 58,92,750/- the aggregate representing 90% of the amount due thereon. Accordingly, 14,32,500 warrants are treated as cancelled and the amount of Rs 138,95,250/- paid thereon represent 10% of the face value of warrants (i.e. Rs 97/- per warrant) stands forfeited.

Source : Equity Bulls

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