The Hindu Business Line : GHCL promoters to convert 45 lakh warrants in March 2007

GHCL's domestic promoters will convert 45 lakh warrants in March 2007. The company had issued the convertible warrants on preferential basis to the promoters.

Preferential allotment

Domestic promoters had availed themselves of the total preferential allotment opportunity at Rs 65 each as the foreign promoter, Banjax Ltd, did not pick up any convertible warrant, Mr Sanjay Dalmia, key promoter and Chairman of GHCL, confirmed to Business Line on Wednesday. Domestic promoters currently hold around 40.5 per cent of the equity stake.

The $8.5-million foreign currency convertible bonds (FCCBs), which were picked up by overseas investors, would be due for conversion after September (at 10 per cent premium to the average price in that month ).

According to an estimate by Kotak Securities, full conversion of FCCBs and warrants is likely to be at Rs 125 each. "After conversion, the equity of the company would rise to Rs 128.2 crore from the current level of Rs 95.1 crore", Kotak Securities said.

Meanwhile, the company has proposed to raise the FII holding limit to 49 per cent from the current ceiling of 24 per cent. FIIs, as on March 31, 2006 held around 6.46 per cent, up from the 1.27 per cent on March 31, 2005.

FII holdings

The total foreign shareholding was placed at 12.09 per cent, including Banjax's stake.

The FCCB conversion would push the overseas equity holding in the company. GHCL has not so far issued any ADR or GDR.

In the one year to March 31, 2006, public holding in the company dipped from 29 per cent to 17 per cent, while the total holding of the private corporate bodies went up to 17.91 per cent from 12.74 per cent.

The stock on Wednesday finished at Rs 141.55 on the BSE, up over three per cent, with a traded quantity of 1.92 lakh shares. On the NSE, the counter's volume was 6.28 lakh shares.

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