The Hindu Business Line : Glory Polyfilms trims warrants issue size

Glory Polyfilms has completed its planned warrants issue last month, but the issue size was reduced to 16-lakh warrants instead of 26-lakh proposed. Mr Y.P. Kela, Managing Director of the company, told Business Line that Ellara India Opportunity Fund, a qualified institutional body, did not eventually pick up the warrants made available to them through preferential allotment.

The warrants, convertible within 18 months into equities of Rs 10 each, were issued to other five non-promoters and promoter entities/individuals at a price of Rs 108 each.

Earlier, shareholders had approved issue of 26-lakh warrants to Ellara and others.

FCCB issue

According to merchant banking sources, the company may complete its proposed issue of 80-lakh FCCBs to a few foreign funds by end of April. The FCCBs too are convertible after 18 months at a price of Rs 125 each for a share of Rs 10 each. “Negotiations are on with six overseas investors and deals may be struck within a fortnight,” sources said. The shareholders had also approved this overseas issue through the QIB placement route.

Mr Kela said that the funds collected through warrants and FCCBs would be utilised for the on-going capacity expansion. The two-phase plan should be fully operational by end of December this year.

The company, which manufactures three- and five-layer laminated films, used in the packaging industry, is introducing seven-layer films and also increasing laminating/printing capacities.

It had its IPO in May 2007 at a price of Rs 48 per share of Rs 10 each.

The stock today closed at Rs 104.35, up 1.62 per cent, with a traded quantity of 2.09-lakh shares on the BSE.

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