Network Ltd option to convert warrants into equity shares lapses

Network Ltd has announced that the Board at its meeting held on September 07, 2007 had allotted 74,50,000 nos. of warrants on preferential basis at a price of Rs 50/- each with an option to be converted into equal number of Equity Shares within a period of 18 months from the date of allotment of warrants as per details given below:

1. Name of Parties : Paliwal Infrastructure Pvt Ltd
- No. of Warrants allotted : 2000000

2. Name of Parties : Paliwal Overseas Pvt Ltd
- No. of Warrants allotted : 1500000

3. Name of Parties : Ashok Sawhney & Sons (HUF)
- No. of Warrants allotted : 1900000

4. Name of Parties : Finco Securities Pvt Ltd
- No. of Warrants allotted : 600000

Total No. of Warrants allotted : 7450000

In terms of issue of warrants, the initial amount equivalent to 10% of value of warrants was to be adjusted against the price payable for acquiring the shares by exercising the option and to be forfeited if option to acquire shares is not exercised by the respective warrant holders within a period of 18 months from the date of allotment of warrants.

Out of these warrants, 2370000 warrants were converted into equity shares in two tranches, on receipt of amount from warrant holders @ Rs 50/- each (inclusive of premium of Rs 40/- per share) previously on October 20, 2007 and March 06, 2008.

As per terms and conditions of issue of warrants, the remaining 5080000 warrants stand lapsed at the expiry of 18 months and initial amount equivalent to 10% of value of warrants paid by warrant holders on said warrants now stands forfeited.

The stock closed the day at Rs.9.90, down by Rs.0.15 or 4.19%. The stock hit an intraday high of Rs.9.90 and low of Rs.9.60.

The total traded quantity was 20300 compared to 2 week average of 5370.

Source : Equity Bulls

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