Electrosteel Castings to issue 14000000 convertible warrants

Electrosteel Castings Ltd has announced that the Board of Directors of the Company at its meeting held on January 19, 2009, inter alia, has accorded its consent, subject to approval of shareholders, to issue upto 1,40,00,000 convertible warrants on a preferential basis to the Promoters/Promoter Group with an option to the holder of each such warrant to apply for and be allotted one equity share of Re 1/- each of the Company for cash at a price of not less than Rs 23/- per share calculated as per SEBI (DIP) Guidelines. The meeting of shareholders has been called on February 19, 2009 for the said purpose.

Pursuant to the recent circular issued by Ministry of Finance, allowing the Indian Companies to prepay the existing FCCBs subject to certain compliances, the Board has accorded its consent to buy-back its outstandings FCCBs having USD 20.45 million, due for redemption /conversion uptill May 26, 2011.

The stock closed the day at Rs.15.53, up by Rs.0.69 or 4.65%. The stock hit an intraday high of Rs.15.90 and low of Rs.14.80.

The total traded quantity was 647196 compared to 2 week average of 990333.

Source : Equity Bulls

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