AGC Networks Ltd to raise Rs. 225 crore through warrants issue at Rs. 675 per warrant

The board of directors of AGC Networks Ltd has approved to issue 33,33,334 convertible warrants on preferential basis at a price of Rs. 675/- per warrant with a right to the warrant holders to apply for and be allotted one equity share of the face value Rs. 10/- each with a premium of Rs. 665/- per share for each warrant within a period of 18 months from the date of allotment of the warrants aggregating to Rs. 225 crores to existing promoter entities.

An amount equivalent to 25% of the warrant price shall be payable at the time of subscription and allotment of each warrant and the balance 75% of the warrant price shall be payable by the warrant holder within a period of 18 months. The pricing of Rs. 675/- per warrant is 8.21% above the SEBI mandated minimum price of Rs. 621/- per warrant and 8% above the closing share price of Rs. 625 as on the date of the Board Meeting.

The warrants aggregating to Rs. 2,25,00,00,000 (Rupees Two Hundred and Twenty Five Crores Only) will be allotted to the promoters group - Essar Telecom Limited (25 lakh warrants) and Onir Metallics Limited (8,33,334 warrants).

The board has decided to hold Extra Ordinary General Meeting on Friday, December 11, 2020 for seeking approval of the shareholders of the Company for issue of Warrants on Preferential basis as mentioned above.

Shares of AGC Networks Limited was last trading in BSE at Rs.630 as compared to the previous close of Rs. 601.65. The total number of shares traded during the day was 3428 in over 116 trades.

The stock hit an intraday high of Rs. 631 and intraday low of 571.6. The net turnover during the day was Rs. 2055023.

Source : Equity Bulls

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