Hindalco Industries Updates on forfeiture of warrants

Hindalco Industries Ltd has now announced with reference to the earlier announcement dated October 13, 2008 regarding Issue of Warrants on a Preferential basis, that the date of receipt of Rs 17.387 against each Warrant should be read as "April 11, 2007" instead of "April 10, 2008".

The Corrected Announcement should be read as follows :

"With reference to the allotment of 8 Crore Warrants made by the Company on April 11, 2007 on a preferential basis to IGH Holdings Pvt. Ltd in pursuance of the approval accorded by the Members of the Company at the EGM held on February 25, 2007 and in respect of which in principle approval was granted by the Stock Exchanges. The holder of each warrant was entitled to apply for and obtain allotment of one Equity Share against each Warrant at the rate of Rs 173.87 per share. The Company had received Rs 17.387 against each Warrant on April 11, 2007.

As per the provisions of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, the Warrant Holder can exercise the right for conversion of Warrant into Equity Shares within 18 months from the date of the allotment i.e. within 18 months from April 11, 2007 by paying the balance amount.

Further note that IGH Holdings Pvt. Ltd has not exercised its right for conversion of the Warrants into shares within the time stipulated under the preferential guidelines. Accordingly, the aforesaid Warrants now stands lapsed."

Source : Equity Bulls

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