Gitanjali Gems resets FCCB conversion price to Rs 220

Gitanjali Gems Ltd has announced that the Company issued 1% Foreign Currency Convertible Bonds (FCCBs) denominated in US Dollars aggregating to 110 million, by way of offering circular dated November 21, 2006. The said FCCBs unless previously redeemed, converted, purchased or cancelled are convertible by the bond holders into fully paid equity shares of Rs 10 each at any time after December 24, 2006 till November 25, 2011 at an initial Conversion Price of Re 275/- per share.

Clause 6.4 of terms and conditions of offering circular provides for a conversion price reset based on a pre fixed criteria and accordingly as on the reset date i.e. November 24, 2008 the conversion price has been adjusted and reset to Rs 220/- in accordance with the pre fixed criteria.

The stock closed the day at Rs.50.75, down by Rs.1.10 or 2.12%. The stock hit an intraday high of Rs.52.60 and low of Rs.50.30.

The total traded quantity was 66625 compared to 2 week average of 172638.

Source : Equity Bulls

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