Dalmia Cement fixes price of Rs 118.82 for conversion of warrants

Dalmia Cement Bharat Ltd has announced about the updates on its rights issue. In terms of the Rights Letter of offer dated June 26, 2001, on September 11, 2001 the Company allotted 76,51,621 - 6% Secured Non Convertible Debentures of Rs 10/- each ("NCD") along with one detachable Warrant ("Warrant"), which entitled the holders thereof to receive one Equity Share of Rs 10/- each of the Company per Warrant, upon their conversion in terms of the Rights Letter of Offer. These Warrants were dispatched to the original allottees of the NCDs when the NCDs got fully paid up. Subsequently, the Company has split its Equity Shares of Rs 10/- each into five Equity Shares of Rs 2/- each in terms of resolution passed by the Shareholders at an Extra Ordinary General Meeting of the Company held on October 17, 2005 and accordingly, the holders of these warrants are now entitled to five Equity Shares of Rs 2/- each instead of one Equity Share of Rs 10/- each, on conversion of each such warrant.

The Board of Directors of the Company, at their meeting held on October 26, 2007, has, in terms of the Rights Letter of Offer, decided to exercise its Call Option for conversion of each Warrant into five Equity Shares of Rs 2/- each of the Company ("Equity Shares"), at a Conversion Price of Rs 118.82 per Warrant.

The stock closed the day at Rs.500, down by Rs.0.20 or 0.04%. The stock hit an intraday high of Rs.503 and low of Rs.486.05.

The total traded quantity was 32017 compared to 2 week average of 19820.

Source : Equity Bulls

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