Temptation Foods forfeits application money on non exercise of conversion option

Temptation Foods Ltd has announced that, the Company had issued and allotted 73,00,000 Equity Share Warrants on August 11, 2008 to the eligible promoters, business associates and Directors of the Company on preferential basis, in terms of Section 81 (1A) of the Companies Act, 1956, and, the then applicable Guidelines for Preferential Issues contained in Chapter XIII of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. The Equity Share Warrants had been issued at a price of Rs. 200 per warrant.

In terms of the issue, the holders of Equity Share Warrants had an option to apply for and be allotted 1 (one) equity share of the Company for each Equity Share Warrant held, any time after the date of allotment but on or before the expiry of 18 months from the date of allotment, in one or more tranches. Accordingly, the last date for exercising the option for conversion of warrants into equity shares was February 10, 2010.

Further, the Equity Warrant holders have not opted to apply for equity shares for the warrants held by them and hence, the aggregate amount of Rs. 14,60,00,000 (Rupees Fourteen Crores Sixty Lacs only) being 10% of the Issue price of Warrants, paid by the Warrant holders stands forfeited.

The stock closed the day at Rs.32.15, down by Rs.0.25 or 0.77%. The stock hit an intraday high of Rs.32.85 and low of Rs.31.85.

The total traded quantity was 236849 compared to 2 week average of 191849.

Source : Equity Bulls

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