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Our Bureau

Chennai , Oct. 13

Aeneas Evolution Portfolio Ltd, the Cayman Island-based hedge fund that had 8.5 lakh convertible warrants in the Chennai-based Igarashi Motors Ltd, has let the warrants expire.

The hedge fund had picked up a 6.12 per cent stake in Igarashi Motors, purchasing 8.5 lakh shares at a price of Rs 180 a share, on April 12, 2005, through a preferential issue. It had also bought 8.5 lakh warrants at a price of Rs 18 each in the company. These warrants could be converted into equity shares for a further price of Rs 162 a piece anytime in the following 18-month period.

The last date for conversion of the warrants into shares was Thursday. Igarashi Motors closed on the NSE at Rs 155.15 on Thursday. Igarashi Motors today confirmed to Business Line that Aeneas had chosen not to convert the warrants. As a consequence, the hedge fund would lose the money it paid to buy the warrants, a little over Rs 1.5 crore.

Earlier this year, Aeneas sold off its 6.12 per cent stake in Igarashi Motors to Goldman Sachs Investment Mauritius. On September 27, Goldman Sachs sold 5.5 lakh shares in the market.

In the quarter ended September, two Japanese entities - Master Trust Bank of Japan Ltd and Japan Trusteee Services Bank Ltd - picked up 2.15 per cent and 2.04 per cent stakes respectively in Igarashi Motors. Standard Chartered Trust Company also bought 1.54 per cent in the company.

Asked for a comment on Aeneas not wanting to convert the warrants, Mr P Mukund, Managing Director, Igarashi Motors, said that it would not affect the company's plans, as there were a number of other means of funding available.

More Stories on : Foreign Institutional Investors | Preferential Allotments | Automobile Components

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