Alok Industries forfeits 1 crore warrants

Alok Industries Ltd has announced that the Company had issued and allotted 1,00,00,000 Warrants to Jiwrajka Associates Pvt Ltd (JAPL) a part of the promoter group, at a price of Rs 102/- per warrant determined as per SEBI (DIP) Guidelines, 2000. The Warrants holders had paid a sum equivalent of 10% of the total consideration as per the terms of the issue and the balance would be payable upon exercise of the conversion option. The Warrant holders were to be allotted one equity share of the Company, of Rs 10/- each, on payment of an exercise price of Rs 102/- per share, on or before July 31, 2009.

The Company have been informed by JAPL that they do not wish to exercise the option of conversion of aforesaid warrants into equity shares. Pursuant to SEBI Guidelines for Preferential Allotment, the Company have thus forfeited 10% warrant subscription money brought in by JAPL at the time of allotment of warrants.

The stock closed the day at Rs.20.85, down by Rs.0.45 or 2.11%. The stock hit an intraday high of Rs.21.90 and low of Rs.20.60.

The total traded quantity was 2928845 compared to 2 week average of 3350525.

Source : Equity Bulls

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