Cholamandalam DBS Finance to raise Rs 300 Crores through FCPs

Cholamandalam DBS Finance Ltd has now announced with reference to earlier annoucement dated October 24, 2008 regarding the approal of the Board of Directors for the proposal to raise additional capital to the extent of Rs 500 crs in one or more tranches and in one or more modes, that the Company, subject to the approval of the shareholders and all regulatory approvals, has decided to seek the approval of the shareholders of the Company for issue of 1,00,00,000 zero coupon fully convertible preference shares (FCPs) of Rs l00/- each at a premium of Rs 200/- aggregating to Rs 300 crs to the existing promoters of the Company.

Tube Investments of India Ltd will be allotted 2667000 Preference shares, EID Parry (India) Ltd will be allotted 1000000 Preference shares, Coromandel Fertilisers Ltd will be allotted 1000000 Preference shares and Carborundum Universal Lttd will be allotted 333000 Preference shares.

The other promoter Singapore based DBS Bank Ltd will be allotted 5000000 Preference shares.

he preference shares shall be convertible into equity shares within a tenor of 18 months from the date of allotment. Further, the approval of the shareholders is proposed to be sought through a postal ballot.

The stock closed the day at Rs.40.95, up by Rs.3.70 or 9.93%. The stock hit an intraday high of Rs.42 and low Rs.98.

The total trading quantity was 13421 compared to 2 week average of 9070.

Source : Equity Bulls

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