Mercator Lines to raise funds via preferential issue

Shipping firm Mercator Lines today said it has approved fund raising by issuing over 2.77 crore convertible warrants to promoters and non-promoters on preferential basis.

The board of directors took a decision to this effect at its meeting held on Thursday, Mercator Lines said in a filing with the Bombay Stock Exchange (BSE).

The considered and gave its nod to issue up to 2,77,80,000 warrants carrying a right to subscribe to equal number of equity shares of Re 1 each on preferential basis to the Promoters and non-promoters, it said.

The board also resolved to set up Mercator employees stock option Scheme 2010 authorising grant of equity stock options not exceeding 5 per cent of the equity capital of the company, it said.

The board decided to convene an extra-ordinary general meeting to seek shareholders' approval for all these matters.

Shares of the company closed at Rs 56.20, down 0.71 per cent from the previous close on the BSE.