Delta Corp approves preferential issue at Rs 51

Delta Corp Ltd has announced that the Board of Directors of the Company at its meeting held on September 20, 2010, inter alia, approved the preferential allotment of equity shares and warrants @ Rs. 51/- per share to certain identified investors aggregating to Rs. 285.48 Crores. (Assuming full conversion of warrants).

The Board also noted that in terms of the Investment Agreement dated February 20, 2008 entered into by the Company and the Western India Trustee and Executor Company Limited, (trustee of India Advantage Fund - III, acting through its investment manager ICICI Venture Funds Management Company Limited) ("ICICI Venture"), ICICI Venture has a pre-emption right in respect of any fresh issuance of securities, to subscribe such further securities so as to maintain their shareholding in the Company. Accordingly, the Board of Directors also approved the issue of additional securities upto the extent of Rs. 39.45 crores, subject to ICICI Venture exercising the said pre-emptive right.

The stock closed the day at Rs.76.75, up by Rs.6.95 or 9.96%. The stock hit an intraday high of Rs.76.75 and low of Rs.68.35.

The total traded quantity was 102.41 lakhs compared to 2 week average of 46.48 lakhs.

Source : Equity Bulls

Keywords