By way of preferential issue of share warrantsThe Board of Prime Focus has approved to issue and allot, on a preferential basis, share warrants worth Rs.330 crore primarily to a promoter entity (Rs. 300 crore) and balance to a non promoter investor (Rs. 30 crore). The funds raised would be used largely towards debt reduction.
The allotment would be a total of 31,132,076 warrants at the price of Rs 106 per share, with a right exercisable by the warrant holder to subscribe for one Ordinary share per Warrant which option shall be exercisable on or after 01 April 2018, but not later than 18 months from the date of issue of Warrants. This translates to a premium of 6.1% to the closing price of the stock on BSE on 05 December 2017. The fully diluted equity capital of the Company will increase to 330 million shares from 299 million shares as of 30 September 2017. The promoter holding, on full conversion, will increase to ~40% from 35% as on 30 September 2017.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)