Usha Martin cancels 38500000 warrants

Usha Martin Ltd has announced that, on December 21, 2007, the Company had allotted 38500000 warrants, each convertible into one equity share, at the option of holders within a period of 18 months from the date of allotment, to certain companies in the promoters group on preferential allotment basis against receipt of advance payment of Rs 33,49,50,000/- [being 10% of total issue price] from the allottee companies.

The said allottee companies have now informed the Company that they would not exercise the warrants. Upon request of these companies, the Company has cancelled these warrants by forfeiting the advance payment received against issue of those warrants.

The stock closed the day at Rs.27.55, up by Rs.1 or 3.77%. The stock hit an intraday high of Rs.28.65 and low of Rs.25.85.

The total traded quantity was 170112 compared to 2 week average of 137622.

Source : Equity Bulls

Keywords