Indiaco Ventures allots Optionally Convertible Preference Shares

Indiaco Ventures Ltd has announced that the Board of Directors of the Company at its meeting held on September 07, 2007 has allotted 8,10,000 1% Optionally Convertible Preference Shares of Rs 100/- each to India Holdings, LLC.

The following are some of the terms & conditions for allotment of OCPS:

1. The Board shall be entitled to determine the conversion period of Optionally Convertible Preference Shares, the option to convert shall be at the discretion of the Board of Directors and shall be decided within 18 months from the date of allotment.

2. The Optionally Convertible Preference Shares issued by the Company shall at the option of the Board of Directors be converted into equity shares of the Company only to the extent that the shareholding of the OCPS holder upon acquisition of the Equity shares which would be allotted to them consequent to conversion of the OCPS shall not exceed 14.5% of the paid up equity share capital or voting rights of the Company at the time of conversion of the OCPS (including the increased paid up equity share capital pursuant to such conversion).

3. The minimum conversion price per equity share at which the conversion of OCPS will take place at Rs 43.13.

4. The OCPS by itself shall not give to the holder thereof any rights of the shareholders or debenture holders of the Company. These OCPS shall be non-transferable and shall not be listed on the Stock Exchange.

5. In case of non-exercise of the conversion option by the Board or partial conversion, the balance outstanding OCPS at the end of 18 months from the date of allotment, shall be converted into Non-Cumulative Preference Shares.

6. (NCPS) of Rs 100/- each carrying a coupon rate of 5% to be redeemed in two equal installments at the end of 6th and 7th year from the date of allotment of the NCPS.

Source : Equity Bulls

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