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C.R. Sukumar

Hyderabad , Sept. 9

THE proposed issue of 60-lakh equity warrants in favour of some of the directors and persons in the management cadre not falling under the promoters category is likely to influence the promoters of Goldstone Technologies Ltd (GTL), the city-based software solutions provider, to convert the 50-lakh equity warrants currently available with them into equity shares much ahead of schedule.

"Unless the GTL promoters go in for conversion of warrants available with them into equity at the earliest, they cannot retain their majority holding in the company as a group," a market analyst observed.

The GTL shareholders at the last annual general meeting held on September 30 last year have approved a resolution to allot 50-lakh warrants convertible into equity shares.

Accordingly, the company allotted equity warrants in favour of the promoters. However, the promoters were yet to convert them into equity shares, having time till the fiscal-end.

At present, GTL promoters have a holding of 27.23 per cent in the Rs 10.83 crore paid-up equity.

While the general public has 50.21 per cent holding, the balance holding is shared by bodies corporate to the tune of 15.96 per cent, NRIs and OCBs 3.86 per cent, and banks and mutual funds 2.74 per cent.

The GTL board at its meeting held during early this month resolved to allot 60-lakh equity warrants of the face value of Rs 10 each at a price of Rs 25 through preferential offer route.

This proposed issue of 60-lakh equity warrants on conversion into shares would result in the equity holding of promoters falling to 17.52 per cent and enabling the NRIs and OCBs to improve their holding to 30.7 per cent from the current level of 3.86 per cent.

In view of this, the analysts told Business Line that the promoters could convert the 50-lakh equity warrants issued to them during September last.

Such a conversion would enable them to consolidate holding in the company on the further enlarged equity base of Rs 21.83 crore post- preferential issue.

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To retain majority stake post-pref issue — Goldstone Tech promoters may convert warrants into equity

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