Magma Fincorp to issue 20 lakh warrants

Magma Fincorp Ltd has announced that the Board of Directors of the Company at its meeting held on March 13, 2010, has approved the issue of 20,00,000 warrants convertible into equity shares to the Promoters and/or promoter group on preferential basis, subject to the approval of the Shareholders and other statutory approvals, if any. The ratio of conversion of warrants to fully paid equity shares of the Company shall be 1:1. The warrants are convertible into Equity shares within a period of 18 months in one or more tranches at a price not less than Rs. 250/- per Equity shares of Rs. 10/- each or at such price which shall not be less than the minimum price specified as per SEBI Guidelines for Preferential Issue (Chapter VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009).

Consequently, the Board of Directors have also proposed to convene an Extraordinary General Meeting of the Shareholders of the Company on April 08, 2010, for seeking approval of the Shareholders to the proposed issue and related matters.

The stock was trading at Rs.267.65, up by Rs.3.65 or 1.38%. The stock hit an intraday high of Rs.269.70 and low of Rs.260.

The total traded quantity was 55916 compared to 2 week average of 222284.

Source : Equity Bulls

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