Fortis Healthcare fixes Warrant Exercise Price at Rs 153

Fortis Healthcare Ltd has announced with reference to Company's rights issue in 2009, pursuant to which the Company has allotted 90,646,936 equity shares of Rs. 10 each. For every equity share allotted in the rights issue, one detachable warrant was also allotted.

As per the Letter of Offer dated September 22, 2009, the warrants can be exercised at any time during the "notice period" notified by the Company within the Warrant Exercise Period, which is a period commencing six (6) months from the date of allotment of equity shares in the rights issue (i.e., October 27, 2009) up to eighteen (18) months from the date of allotment of equity shares in the rights issue (i.e., a period from April 27, 2010 to April 26, 2011).

Pursuant to a resolution dated April 29, 2010, the Issue Committee of the Board of Directors has approved the exercise of the warrants into equity shares at Warrant Exercise Price of Rs.153.

As per the terms of the Letter of Offer, the Warrant Exercise Price for the Detachable Warrants shall be determined in accordance with the following formula:

Warrant Exercise Price = A26 + A2 / 2
where A26 is the average of the weekly losing prices of the equity shares on the NSE in the 26 weeks immediately preceding the date fixed by the Company for the determination of the Warrant Exercise Price of the Detachable Warrants (the "Relevant Date") and A2 is the average of the weekly closing prices of the equity shares on the NSE in the two weeks immediately preceding the Relevant Date.

The Company has fixed April 29, 2010 as the Relevant Date for purposes of determining the Warrant Exercise Price based on the above mentioned formula.

As per the Letter of Offer dated September 22, 2009, at any time prior to the expiry of the notice period fixed by the Company, the holders of Detachable Warrants are entitled to apply for one equity share of Rs.10 at the Warrant Exercise Price for each Detachable Warrant held by them.

The Notice period for exercise of warrants is May 21, 2010 to June 19, 2010.

The stock was trading at Rs.170.35, up by Rs.8.05 or 4.96%. The stock hit an intraday high of Rs.170.80 and low of Rs.164.35.

The total traded quantity was 1423430 compared to 2 week average of 1247687.

Source : Equity Bulls

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