Nectar Lifesciences adjusts Conversion Price of FCCBs to Rs 25.719

Nectar Lifesciences Ltd has announced that pursuant to the para 5.3.4 of the Terms and Conditions relating to adjustment of conversion price in connection with the Zero Coupon Convertible Bonds due 2011 (FCCBs) issued by the Company on April 25, 2006, it is hereby informed that, the Board of Directors of the Company at its Meeting held on January 15, 2010, have declared the 25% Final Dividend i.e. Re. 0.25/- per Equity Share and accordingly Conversion Price of said Bonds stands adjusted restoratively from the record date i.e. January 22, 2010 to Rs. 25.719.

Conversion Price before the Adjustment (OCP) : Rs. 25.885

Current Market Price (Average of Daily closing prices on NSE of five consecutive Trading Days preceding the day of Declaration of Dividend (CMP) : Rs. 38.880

fmv = Total value of Dividend / Total Equity Shares i.e. Rs. 38065242.50 / 152260970 : Rs. 0.25

Formula of Conversion Price Adjustment:

- Conversion price after the adjustment (NCP) = OCP x [(CMP - fmv) / CMP]
NCP = 25.885 x [(33.880 - 0.25) / 33.880) = Rs. 25.719

Therefore adjusted conversion price is Rs. 25.719 from the record date i.e. January 22, 2010.

The stock was trading at Rs.40.25, down by Rs.0.15 or 0.37%. The stock hit an intraday high of Rs.41.90 and low of Rs.40.05.

The total traded quantity was 396256 compared to 2 week average of 1515085.

Source : Equity Bulls

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