RDB Industries forecloses warrants, forfeits warrant amount

RDB Industries Ltd has now announced with reference to the earlier announcement dated on December 07, 2006 regarding preferential allotment of 750000 warrants at a premium of Rs 160/- per warrant, that the 750000 warrants of Rs 10/- each at a premium of Rs 160/- per warrant issued on preferential basis to M/s. Teck Consultancy & Services Pvt Ltd on December 07, 2006 on which Rs 17/- per warrant (i.e. 10% of issue price) was paid at the time of issue, with an option to get them converted into equity shares of the Company in the ratio of 1:1 within a period or 18 months from the date of issue i.e. on or before June 06, 2008, on payment of the balance money of Rs 153/- per warrant (i.e. 90% of issue price).

The Company has further announced that as the warrant-holder did not exercise the option of converting the warrants into equity shares of the Company on or before June 06, 2008, the Company, as per the terms of issue of warrant, foreclosed all the rights of the warrant and accordingly forfeited the amount of Rs 17/- per warrant paid by the warrant-holder totaling to Rs l,27,50,000/- (Rupees One Crore Twenty-seven Lac Fifty Thousand Only).

The stock closed the day at Rs.115.75, up by Rs.3.25 or 2.89%. The stock hit an intraday high of Rs.116 and low of Rs.109.40.

The total traded quantity was 4898 compared to 2 week average of 10797.

Source : Equity Bulls

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