Eveready Industries to issue warrants at Rs.58

Eveready Industries India Ltd has announced that the Board of Directors of the Company at its meeting held on September 06, 2007, has resolved to issue offer for subscription of allotment up to 45,00,000 convertible warrants with an option to the holder of each such warrant to apply for and be allotted one equity share of Rs 5/- each in the capital of the Company at a premium of Rs 53/- per share i.e. at an aggregate price of Rs 58/- per share, ranking pari passu with the then existing shares of the Company in all respects. The period during which the conversion option has to be exercised shall not exceed 18 months from the date of allotment.

The conversion price for the shares arising out of the warrants has been fixed in accordance with the provisions of Clause 13.1.1.1 of the Securities & Exchange Board of India (Disclosure & Investor Protection) Guidelines, 2000 ('DP Guidelines') and the 'relevant date' for the proposed has been taken as September 05, 2007.

The proposed allottee of the warrants has expressed its intention to subscribe to the warrants at the above price and has agreed (a) not to seek conversion of warrants into equity shares in excess of 5% of the total issued equity capital in a financial year and (b) to maintain the total holding of the Promoter Group including the proposed allottees below 55% at all time unless they choose to make an open offer in terms of the Securities & Exchange Board of India (Substantial Acquisition & Takeover) Regulations, 1997.

The equity shares allotted to the proposed allottee by conversion of the warrants shall be subject to 'lock in' for a period of 3 years from the date of allotment as per the Clause 13.1.1.1. of the DIP Guidelines.

The proceeds of the above issue will be utilized in the business of the Company.

The above is subject to approval of shareholders in general meeting made under Section 81 (1A) of the Companies Act 1956 and other applicable provisions if any and subject also to ether consensus and provisions under applicable rules, regulations and guidelines.

At the same meeting the Board also resolved to convene an Extraordinary General Meeting of the Members of the Company to be held on October 05, 2007, to consider and, if thought fit, to pass special resolutions approving the abovementioned issues of securities.

The stock closed the day at Rs.53.30, up by Rs.0.90 or 1.72%. The stock hit an intraday high of Rs.53.95 and low of Rs.52.80. The total traded quantity was 74744 compared to 2 week average of 138134.

Source : Equity Bulls

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