Cholamandalam DBS allows conversion of warrants into shares at Rs 95

Cholamandalam DBS Finance Ltd has announced that with reference to the Companies rights issue 2007, wherein the Company had allotted 1,42,29,929 convertible detachable warrants along with 1,42,29,929 rights equity shares of Rs 10/- each in the proportion of one warrant for every rights shares allotted in the issue. As per the offer document dated September 15, 2007, the warrants can be converted into equity shares at the option of the Company any time during the period commencing 6 months from the date of allotment being November 06, 2007 up to 18 months from the date of allotment i.e., May 06, 2008 to May 06, 2009.

The Board of Directors vide a resolution dated July 14, 2008 have approved the conversion of the warrants into equity shares with warrant exercise price as Rs 95/- per warrant.

As per the terms of the offer document, the warrant exercise price shall be the least of (a) 20% discount to the average six weekly closing prices before the date of the public notice on NSE, Designated Stock Exchange (being Rs 95.62); or (b) 20% discount to average two weekly closing prices before the date of the public notice on NSE, the designated Stock Exchange (being Rs 102.36); or (c) the Cap Price, being Rs 275 per Equity Share.

Therefore the conversion is being made at the least of the above three prices, Rs 95/- (rounded off).

Warrant conversion ratio : One new equity share of Rs 10/- each for every warrant surrendered for conversion

Warrant conversion period : August 02, 2008 to September 01, 2008.

Source : Equity Bulls

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