Grabal Alok converts warrants into equity shares

Grabal Alok Impex Ltd has announced that 7,57,800 and 2,72,200 Warrants convertible into equity shares issued and allotted to Niraj Realtors & Shares Pvt Ltd ("NR&SPL") and Jiwrajka Investment Pvt Ltd ("JIPL") respectively at the meeting of the Board of Directors of the Company held on April 14, 2007 at a price of Rs 145/- per warrant determined as per SEBI guidelines. NR&SPL and JIPL had paid an equivalent of 10% of the total consideration at the time of allotment of Warrants. As per the terms of issue of Warrants, the right of conversion was to be exercised within a period of 18 months from the date of allotment and the conversion was to be made at a price of Rs 145 per equity share. The Special Resolutions under section 81 and (81A) of the Companies Act, 1956 to the above effect were passed through Postal Ballot on March 31, 2007.

NR&SPL and JIPL have paid the balance amount payable for the conversion of warrant into equity and have on July 02 a notice of conversion of 7,57,800 and 2,72,200 Warrants respectively held by them in the Company. The said 7,57,800 and 2,72,200 have accordingly been converted into 7,57,800 equity shares and 2,72,200 equity shares of Rs. 10/- each for cash at a premium of Rs 135/- per share in accordance with SEBI Guidelines for Preferential Allotment and the Company has at the meeting of the Executive Committee of Board of Directors held on July 02, 2007 issued and allotted 7,57,800 and 2,72,200 equity shares to NR&SPL and JIPL respectively.

In the matter of issue of 20,00,000 Warrants convertible into equity shares issued and allotted to Megallan Consulting Ltd. ("Megallan") on January 03, 2006 on a preferential basis as per SEBI Guidelines under the FDI route. The right of conversion was to be exercised within a period of 18 months from the date of allotment of the Warrants and the conversion was to be made at a price of Rs 109.00 per equity share. The special resolutions under section 81 and 81(1A) of the Companies Act, 1956 to the above effect were passed at the Extra-Ordinary General Meeting of the Company held on December 19, 2005. Megallan had, till date, converted 19,95,000 Warrants into equity shares.

Out of the above referred 20,00,000 Warrants, Megallan has on July 02, 2007 sent a notice for conversion of balance 5,000 warrants into equity shares. The said 5,000 Warrants have been accordingly converted into 5,000 equity shares of Rs 10/- each for cash at a premium of Rs 99/- per share in accordance with SEBI Guidelines for Preferential Allotment and the Company has at the meeting of the Executive Committee of Board of Directors held on July 02, 2007 issued and allotted 5,000 equity shares to Megallan. With this the entire 20,00,000 Warrants issued and allotted to Megallan January 03, 2006 gets converted into equity shares.

By virtue of conversion of the above referred 10,35,000 Warrants (i.e. 10,30,000 + 5,000) into equity shares, the paid up equity share capital of the Company has increased from 2,06,00,000 equity shares of the face value of Rs 10/- each to 2,16,35,000 equity shares of the face value of Rs 10/- each.

Source : Equity Bulls

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