Pipavav Shipyard to allot warrants to Rakesh Jhunjhunwala

The Board of Directors of Pipavav Shipyard Ltd at its meeting held on September 06, 2011, subject to the approval of Members, has approved issue of 1,05,00,000 (One Crore Five Lacs) convertible warrants ('Warrants') to non-institutional individual investors at a price of Rs. 78/- (Rupees Seventy Eight only) per Warrant. Each Warrant is convertible into one fully paid-up Equity Share of Rs. 10/- each of the Company, at any time within 18 months from the date of allotment of Warrants.

The allottees include Mr. Rakesh Jhunjhunwala (50,00,000 warrants), Ms. Rekha Jhunjhunwala (50,00,000 warrants) and Mr. Utpal Sheth (5,00,000 warrants).

The Board, subject to the approval of Members, has approved issue of 1,00,00,000 (One Crore) Warrants to Grevek Investments and Finance Pvt. Ltd., Promoters of the Company, at a price of Rs. 78/- (Rupees Seventy Eight only) per Warrant; Each Warrant is convertible into one fully paid-up Equity Share of Rs. 10/- each of the Company, at any time within 18 months from the date of allotment of Warrants.

The proceeds from the issue of Warrants would be used towards furthering opportunities in Defence segment and for General Corporate purposes.

The stock closed the day at Rs.77.30, up by Rs.0.75 or 0.98%. The stock hit an intraday high of Rs.78.80 and low of Rs.75.20.

The total traded quantity was 13.75 lakhs compared to 2 week average of 17.96 lakhs.

Source : Equity Bulls

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