Business Daily from THE HINDU group of publications
Tuesday, Feb 27, 2007
ePaper
Business Daily from THE HINDU group of publications Tuesday, Feb 27, 2007 ePaper |
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Markets
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Stocks Corporate - Preferential Allotments
Our Bureau
The conversion price for the 12-crore preferential warrants in Reliance Industries Ltd to be issued to its promoters has been fixed at Rs 1,402 per share, a statement from the company said. The Chairman, Mr Mukesh Ambani, and others will be spending Rs 16,800 crore if they decide to convert all the warrants issued to them within 18 months. This will also increase their stake in RIL from 50.6 per cent to 55 per cent. The price of Rs 1,402 per share is the average of the weekly high and low of the closing prices of the company's equity shares quoted on the National Stock Exchange during the two weeks preceding the relevant date i.e. February 27, said the company. However, the average price works out to Rs 1,253 per share considering the weekly high and low of the closing prices of the company's equity shares quoted on the NSE during the six months preceding the relevant date. According to the board decision of February 24, the promoters will pay up 10 per cent of the price immediately upon being allotted the warrants, and the remainder when the promoters decide to convert their warrants into shares within a period of 18 months from the time of allotment. Reliance Industries Ltd has initiated the necessary steps to implement its proposal of the preferential offer of warrants to its promoter/promoter group pursuant to the board meeting held on February 24. "Consent of the shareholders is being sought through a Postal Ballot," it said. The last date for receipt of the postal ballot from shareholders is March 29." RIL said it expected to announce the results of the resolution being passed through postal ballot on March 30, 2007. Reliance shares ended lower by 0.4 per cent on the BSE at Rs 1407.2 after hitting a high of Rs 1445 and a low of Rs 1373.50.
Related Stories: More Stories on : Stocks | Preferential Allotments | Reliance Industries Ltd
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