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Olectra Greentech Limited has cancelled the allotment of warrants to MEIL Holdings Limited (MHL).
The decision to cancel the allotment and forfeiture of shares comes in the backdrop of non-payment of funds due for the warrrants, according to a regulatory filing with the BSE.
In accordance with the provisions of Regulation 30 of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, the board of directors of the company, at their meeting held today, it informed that on October 10, 2018, the company had allotted 91,00,000 warrants to MHL, the promoter entity, in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 at an issue price of ₹175.30 (including a premium of ₹171.30).
The company had received 25 per cent of the warrant issue price of ₹39.88 crore (at ₹43.82 per warrant) as the upfront subscription amount at the time of allotment of warrants.
The balance 75 per cent of the issue price was to be paid by MHL at any time on or before April 9 to convert the warrants into equity shares.
Since the company has not received the balance 75 per cent subscription amount from MHL till the due date, these warrants stand cancelled and upfront subscription amount of ₹39.88 crore stands forfeited.
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