Man Industries reported that Orange Mauritius Investments has converted its outstanding 44.56 lakh GDR into equal number of equity shares. With this conversion, Orange will hold 7.46 per cent stake in the company.

Orange Mauritius is a Foreign Institutional Investor sub-account registered under the London-based and India-focused FII — First International Group Plc.

Man Industries had issued 67.30 lakh GDRs at $5.20 a GDR in 2006. The Bank of New York Melon in April told Man Industries to find a new depository agent as it is unwilling to hold its GDRs beyond November. As of November, the company had 44.56 lakh GDRs outstanding.

Besides attempting to convince Bank of New York Melon, the company tried to find a new depository. “But somehow, it had not been possible to work out an arrangement with any of the other depositories,” said Man Industries in a statement in November.

Bank of New York Melon informed GDR holders about its resignation as depository in September and told them to convert the GDRs into equity shares before November end.

Man Industries had received a communication from Dubai Financial Services Authority indicating that the GDRs issued by the company were suspended from trading from November 20.

Now, with Orange Mauritius converting its GDRs into equity, Man Industries has also converted all the outstanding GDRs into equity.

On Monday, shares of Man Industries closed 2 per cent lower at Rs 139 on the BSE.

(This article was published on December 3, 2012)
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