Gati updates on warrants issue

Gati Ltd has announced that the Directors of the Company approved in supersession of the resolution passed by them on September 21, 2009, the offer of 10,232,400 warrants convertible in pursuance of SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009 (SEBI Regulations) to Mr. Mahendra Kumar Agarwal, one of the promoters of the Company on preferential basis, subject to the approval of the Shareholders at the forthcoming Extraordinary General Meeting of the Company.

The Board will issue not more than 4,872,000 warrants, convertible at the option of the warrant holder(s) within an aggregate time period of 18 months from the date of allotment of the warrants, into 4,872,000 Equity shares of Rs. 2/- each, at a premium of Rs. 79/- per share for cash, as determined in accordance with the relevant SEBI Regulations and not more than 5,360,400 warrants, convertible at the option of the warrant holder(s) within an aggregate time period of 18 months from the date of allotment of the warrants, into 5,360,400 Equity shares of Rs. 2/- each, at a premium of Rs. 56/- per share for cash, as determined in accordance with the relevant SEBI Regulations.

The Directors also approved the convening of Extraordinary General Meeting on January 11, 2010.

The stock closed the day at Rs.55.70, down by Rs.1.55 or 2.71%. The stock hit an intraday high of Rs.58.45 and low of Rs.55.15.

The total traded quantity was 51084 compared to 2 week average of 46487.

Source : Equity Bulls

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