Allcargo Global Logistics revises warrants conversion price to Rs 934

Allcargo Global Logistics Ltd has announced that in accordance with the provisions of Section 81(1A) of the Companies Act, 1956 read with SEBI (DIP) Guidelines, 2000 as amended, the Company had issued and allotted 1,513,514 Warrants of Rs. 10 each convertible into equal number of equity shares of the Company at a price not less than Rs. 934 per equity share (including a security premium of at least Rs. 924 per equity share) to Blackstone GPV Capital Partners (Mauritius) V-K Ltd.. Blackstone GPV Capital Partners (Mauritius) V-L Ltd., Blackstone GPV Capital Partners (Mauritius) V-M Ltd. and Blackstone GPV Capital Partners (Mauritius) V-N Ltd. ("Investors" or "Warrant Holders") on preferential basis.

In accordance with the terms of the Investment Agreement, the Warrants so allotted are due for conversion at the option of the Warrant Holders at an exercise price of Rs. 1,284 per equity share, on or before September 26, 2009. The Warrant Holders have informed the Company about their intention to convert the Warrants into Equity Shares of the Company at an exercise price of Rs. 934 per equity share instead of Rs. 1,284 per equity share.

The Board of Directors of the Company considered the prevailing market conditions, the economic slowdown and the funding requirement of the Company, approved and accepted the revised exercise price vide resolution passed by circulation on September 17, 2009. The acceptance of the revised exercise price would necessitate amendments in the Investment Agreements executed amongst the Company, Promoters and Warrant Holders and also amendments in the Articles of Association of the Company. Accordingly, an Extraordinary General Meeting of the Members of the Company has been convened on October 15, 2009 to approve the amendments in the Articles of Association of the Company.

The stock closed the day at Rs.836.45, up by Rs.10.15 or 1.23%. The stock hit an intraday high of Rs.836.45 and low of Rs.818.

The total traded quantity was 13926 compared to 2 week average of 10436.

Source : Equity Bulls

Keywords