Jai Balaji to issue securities

Jai Balaji to issues securities by way of preferential allotment of 61,18,000 Zero Coupon fully Convertible Debentures of the face value of Rs 326.90 each for cash at par to Citi Venture Capital Fund and 22,41,000 Zero Coupon fully Convertible Debentures of the face value of Rs 326.90 each for cash at par to India Equity Partners Fund I, LLC.

The entire sum of Rs 326.90 shall be payable on application. The Debentures shall be compulsorily converted into equity shares within 18 months from the date of allotment thereof, at a conversion price of Rs 326.90 per equity share being a price as determined in accordance with Clause 13.1.1.1 of Chapter XIII of the SEBI (Disclosure & Investor protection) Guidelines, 2000 ("SEBI Guidelines"). The relevant date for the purpose of price fixation has been taken as December 11, 2007 (i.e. the 30th day prior to the date of EGM i.e. January 10, 2008).

The comapny is to issue and allot, by way of preferential allotment basis 3,00,000 Warrants at a price of Rs 326.90 each to Sai Prasad Multitrade Pvt Ltd and 93,00,000 Warrants to Promoter, Promoter Group Companies, Directors and Relatives.

The warrant holder thereof are entitled to apply and be allotted one fully paid up Equity share of Rs 10/- for each Warrant at any time not exceeding 18 (Eighteen) months from the date of allotment of the Warrants at an exercise price of Rs 326.90 (Rupees Three hundred twenty six and paise ninety only) per equity share including a premium of Rs 316.90 (Rupees Three hundred sixteen and paise ninety only) being a price as determined in accordance with Clause 13 of Chapter XIII of the SEBI (Disclosure & Investor protection) Guidelines, 2000 ("SEBI Guidelines”) issued by SEBI, such that the total number of equity shares to be issued by the Company upon conversion of the Warrants do not exceed 96,00,000 Equity Shares of the face value of Rs 10/- each.

Source : Equity Bulls

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