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Our Bureau

Kolkata, Sept. 8 It will soon start raining convertible warrants on investors, thanks to a clutch of promoters.

Companies including Bombay Dyeing, Martin Burn and Eveready Industries have notified the stock exchanges their plans to launch these instruments.

Bombay Dyeing has proposed to raise Rs 119 crore or so through the issue of convertible warrants to group outfit Bombay Burmah Trading Corporation.

In fact, a letter of offer was issued to the latter in late August.

Bombay Burmah has accepted the offer.

Earlier, there was a special resolution passed by shareholders to issue up to 19,30,000 warrants at Rs 616 per share.

The Bombay Dyeing stock closed at Rs 610 on the BSE on Friday, registering a 4.5 per cent increase. More than 3 lakh shares made up the total traded quantity.

Martin Burn has informed that its board meeting on Friday has okayed the issue of 9.9 lakh equity share warrants on a preferential basis to a group of strategic investors.

Some of the latter may be existing shareholders too. Each warrant will be convertible into one equity share within 18 months from the date of allotment.

Martin Burn, in fact, had earlier stated that its board (which met in mid-August) could not then finalise the terms for the issue of equity shares/warrants or any other instrument convertible into equity shares on a preferential basis in line with the relevant regulation. The September 7 board meeting, however, has sorted it out.

On Friday, the Martin Burn stock closed at Rs 98 on the BSE.

Volumes were low – constituted by a little more than 3,000 shares. Its 52-week high and low stood at Rs 98 and Rs 45.15, respectively.

Eveready Industries plans to issue up to 45 lakh convertible warrants with an option to the holder of each warrant to apply for and be allotted one equity share of Rs 5 each.

There will be a premium of Rs 53, which will take the total price to Rs 58 per share.

The period during which the conversion option has to be exercised will not exceed 18 months, the company has informed.

The Eveready stock closed at Rs 55 on the BSE on Friday. Trading volumes in the counter have been picking up lately. The stock had dropped to a little over Rs 40 in August. It was trading at about Rs 100 a year ago.

Television Eighteen, meanwhile, has informed that its board has okayed allotment of 50 lakh warrants at Rs 796 per warrant to Network18 India Holding Pvt Ltd, a 100 per cent subsidiary of Network 18 Fincap Ltd, on a preferential basis.

This will be subject to necessary approval of the shareholders of the company.

More Stories on : Corporate Bonds | Preferential Allotments

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