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Gayatri Projects Ltd has convened a meeting of the board of directors on December 5 to consider the withdrawal of the Draft Letter of Offer dated March 21 filed with the SEBI and stock exchanges on its rights offer and to reconsider its terms.
In a statement to the exchanges, the company has informed that it would consider and approve the revised rights offer and to reconstitute the Rights Issue Committee for the purpose of the proposed rights issue by seeking shareholders nod.
During the meeting, the company has also decided to approve and adopt the un-audited Consolidated Financial Results and the Limited Review Report for the half year ended September 30, for the purpose of proposed rights issue.
Covering other matters, the company would approve the reservation of equity shares for FCCBs outstanding on the record date in the proposed rights issue of the company and also approve this reservation which is likely to be over and above the issue size.
The company board has mentioned that it proposes to approve the notice calling extraordinary general meeting for seeking shareholders consent for the reservation of equity shares in proposed rights issue for the FCCB holders in terms of SEBI (ICDR) Regulations, 2009 as the existing resolution is valid until January 31, 2012.
Gayatri Projects in March approved the ratio for issue of rights equity shares and detachable warrants. Accordingly, it was decided to offer, issue and allot one equity share of face value Rs 10 each of the company, carrying one detachable warrant/ rights equity share pursuant to a rights issue to the existing equity share holders for every two equity shares held on the record date.
It had also decided to have reservation for FCCB holders with the rights equity shares carrying one detachable warrant for every two equity shares held by the FCCB holders as on the date of conversion of the relevant outstanding FCCBs. Each detachable warrant shall be converted into one equity share.
The company shares closed the day's trade lower by 2.41 per cent at Rs 119.60.
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