Indiabulls Financial allots 50,00,000 shares at Rs.134.87 on conversion of warrants

Indiabulls Financial Services Ltd has announced that upon exercise of the option for conversion of 50,00,000 Series II warrants (out of 1,00,00,000 Series II Warrants) by the Promoters and receipt of exercise amounts aggregating Rs 60,69,00,000 (total subscription money less 10% upfront amount paid at the time of allotment of warrants), the Board of Directors of the Company at its meeting held on April 23, 2007, inter alia, has allotted an aggregate of 50,00,000 Equity Shares of face value Rs 2 each at a conversion price of Rs 134.87 per Equity Share to the Promoters of the Company

Further the Company has informed that the said warrants had been allotted to the Promoters by the Board of the Company on June 08, 2006, pursuant to a Special Resolution passed by the Shareholders of the Company under Section 81 (1A) of the Companies Act, 1956 at an Extraordinary General Meeting of the Company held on May 26, 2006. Further, Pursuant to the Scheme of Arrangement of Demerger between the Company and Indiabulls Real Estate Ltd (IBREL) approved by the Hon'ble High Court of Delhi, New Delhi, by its order dated November 24, 2006, the exercise price of Rs 250/- that was payable against each Warrant stood proportionately allocated, as between the Company and IBREL, at Rs 134.87 and Rs 115.13 per Equity Share, respectively.

Consequent to the above allotment, the paid-up equity capital of the Company stands increased from Rs 38,95,50,756 divided into 19,47,75,378 equity shares of face value Rs 2/- each to Rs 39,95,50,756 divided into 19,97,75,378 equity shares of face value Rs 2/- each.

The stock closed the day at Rs.503.65, up by Rs.30.30 or 6.40%. The stock hit an intraday high of Rs.507.70 and low of Rs.475.25. The total traded quantity was 1460385 shares compared to 2 week average of 1341980.

Source : Equity Bulls

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