The Hindu Business Line : Arvind Mills board okays 5.06 crore pref issue

Upon their conversion into equity shares at the end of 18 months, the promoter stake in the company will rise to 46.77 per cent, from 33.9 per cent currently. Each warrant is convertible into one equity share, the total amount not to exceed Rs 263.12 crore, said a statement from the company to the stock exchanges.

This works out to a maximum conversion price of Rs. 52 a share. The stock price of Arvind Mills closed at Rs. 61.90 on BSE, rising by 6.36 per cent on Friday.

Shareholder approval will be sought for this issue at an EGM scheduled for October 23 this year. The relevant date for the purpose of determining the price for the preferential issue of the equity shares and warrants would be 30 days prior to the date of the EGM.

Commenting on the issue, Mr Sanjay Lalbhai, Chairman and the Managing Director of the company, said “The company is looking forward to expand its retail and brands business and at the same while trying to manage the challenge in its core fabrics and garments business against the backdrop of rising rupee.

There is requirement of funds for the growth of the business as well as a need to augment the net worth.”

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