Great Eastern Shipping Company cancels 4995000 warrants

Great Eastern Shipping Company Ltd (GE Shipping) has announced that the Company had on August 09, 2007 allotted 50,05,000 convertible warrants to certain Promoters and Non Executive Directors, pursuant to the resolution passed by the shareholders at their meeting held on July 26, 2007, at a price of Rs 312.75/- per share. Each warrant was convertible into one Equity Share of the face value of Rs 10/-, at the option of the Warrant holders, at any time prior to expiry of 18 months from the date of allotment of the warrants.

Out of the 50,05,000 warrants, 10,000 warrants were converted into Equity Shares. Due to the unfavourable market conditions, which do not justify conversion of warrants, the balance 49,95,000 warrants were not converted. Accordingly the said warrants stand cancelled and the amount of Rs 15,98,40,000/- being the amount received upfront from the warrant holders @ Rs 32/- per warrant stands forfeited, as per the terms of the issue.

The stock closed the day at Rs.216.90, up by Rs.9.45 or 4.56%. The stock hit an intraday high of Rs.222 and low of Rs.206.

The total traded quantity was 331607 compared to 2 week average of 312720.

Source : Equity Bulls

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