Hyderabad, Aug. 30
The board of directors of Sagar Cements Ltd at its meeting on Wednesday decided to issue 18,50,000 convertible warrants of Rs 82 each on a preferential basis to identified persons in the promoter group. However, the decision would be subject to obtaining approvals of shareholders and regulatory authorities. Each warrant of Rs 82 would be converted into one equity share of Rs 10 each at a premium of Rs 72 per share within an aggregate time period of 18 months from the date of allotment. The issue of warrants is aimed at raising funds to part finance the proposed expansion programme, which would increase the clinker capacity of the plant from the present level of 5.5 lakh tonnes per annum to 20 lakh tpa and of cement capacity from 3 lakh tpa to 21.5 lakh tpa, the company informed the stock exchanges.