Grabal Alok reprices FCCBs

Grabal Alok Impex Ltd has announced with reference to the decision taken by the Board of Directors on April 05, 2010, to revise the conversion price of the outstanding US$ 2,00,00,000 - 1 per cent foreign currency convertible bonds due 2012 convertible into ordinary shares ("Shares") of the Company ("FCCBs"), subject to the approval of the shareholders and approval of the Reserve Bank of India.

The shareholders' of the Company have approved such repricing vide their special resolution dated May 21, 2010, passed through postal ballot and the Reserve Bank of India has, vide their letter dated June 29, 2010, approved the revision of the conversion price subject to compliance with the terms and conditions laid down in the relevant Press Notes.

In pursuance of the shareholders' approval, the Board has been authorized to fix the revised conversion price. Accordingly, the Board at its meeting held on July 21, 2010, approved the conversion price of Rs. 51/- (Rupees Fifty One only) per share for conversion of FCCBs, which is higher than the price as per the pricing norm provided in the Press Note dated February 15, 2010 read with the Press Note dated March 15, 2010.

To effect the revision of the conversion price of the FCCBs, the Company has executed a Supplemental Trust Deed with the Deutsche Trustee Company Ltd (the "Trustee") as per the terms and conditions agreed with the Trustee.

As a result of the revision of the conversion price of the FCCBs, the number of Shares to be issued per US$ 1,000 principal amount of FCCBs will be increased from 324.3 to 864.9. Fractions of Shares will not be issued on conversion and no cash adjustments will be made in respect thereof.

The stock was trading at Rs.47.65, down by Rs.0.45 or 0.94%. The stock hit an intraday high of Rs.49.50 and low of Rs.47.45.

The total traded quantity was 2174 compared to 2 week average of 5233.

Source : Equity Bulls

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