Lloyd Electric warrants lapse

Lloyd Electric & Engineering Ltd has announced that this has reference to the allotment of 50,00,000 convertible Warrants issued @ Rs 225/- per warrant by the Company on preferential basis on September 11, 2007 to M/s. Perfect Radiators & Oil Coolers Pvt. Ltd (15 lacs warrants), M/s. Airserco Pvt. Ltd (15 lacs warrants) and M/s. Rajul Estates Pvt. Ltd (20 lacs warrants), pursuant to the approval accorded by the members of the Company at the Extra Ordinary General Meeting held on August 27, 2007 and in respect of which in-principle approval was granted by the stock exchanges.

As per the provisions of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000 ("Guidelines"), the warrant holders can exercise its right of conversion within 18 months from the date of allotment of warrants i.e. 18 months from September 11, 2007 by making the balance payment.

Further the Company has informed that, the warrant holders have not exercised the right of conversion of warrants into equal no. of equity shares within the time limit specified in terms of issue and in accordance with the guidelines. Accordingly, the aforesaid warrants stand lapsed. The committee of the Board of Directors of the Company at its meeting held on March 12, 2009, forfeited the upfront payment of Rs 11.25 crores made by the warrant holders, being 10% of the Issue Price of the 50,00,000 convertible warrants.

The stock closed the day at Rs.13.95, down by Rs.0.55 or 3.79%. The stock hit an intraday high of Rs.15.50 and low of Rs.13.70.

The total traded quantity was 22341 compared to 2 week average of 25355.

Source : Equity Bulls

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