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Our Bureau

Chennai , April 16

SHASUN Chemicals & Drugs Ltd will issue 4.5 lakh warrants on preferential basis to promoters.

Each warrant is convertible into one equity share of Rs 10 at a premium of Rs 333.

The company has declared an interim dividend of Rs 2.5 per share, which will be paid to all shareholders whose names appear on the company's register on April 26.

Company sources told Business Line today that the promoters would bring in 10 per cent of the price of the warrants at the time of issue of the warrants.

The other 90 per cent would be brought in over the following 18 months.

When the warrants are converted into equity shares, the promoters' stake would go up by 2.5 per cent from 40.5 per cent to 43 per cent.

The conversion takes the promoters' stake closer to what it was when Shasun Chemicals gave 10 per cent equity stake to GMO Emerging Market Fund, USA, in November last.

When that happened, the promoters' stake slid by nearly 4 per cent to 40.5 per cent.

In a notification to the stock exchanges, the company has said that "since all the directors are interested in the resolution", the resolution is to be placed before the shareholders for approval.

An extraordinary general meeting of shareholders is to be convened for this purpose.

More Stories on : Preferential Allotments | Pharmaceuticals

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