Moschip Lines Up Pref Issue To Raise Funds

MosChip Semiconductor Technologies has decided to allot 12.66 lakh equity shares and 6 lakh convertible warrants at Rs 33 a share to few individual investors through a preferential offer. The board, which met here on April 24, has scheduled an extraordinary general meeting on May 22 to seek shareholders nod for the issue. The proposed issue would mop up Rs 4.17 crore immediately and about Rs 2 crore on conversion of warrants.

The company has earlier allotted 31,60,000 equity shares and 9,50,000 warrants to three US-based technology partners, ESS Technology Inc, Flextronics Semiconductor Inc, Solutions Technologies Inc, and India Technology Venture Unit Scheme of UTI at Rs 30 a share to mop up Rs 15.33 crore, for which it had taken the approval of shareholders on May 27 at an EGM. The company plans to utilise the funds to meet the product development expenditure, long term working capital needs and capital expenditure as many of its products are now reaching the final stages of design cycle. The paid up share capital will increase from Rs 22.01 crore to Rs. 23.25crore after the issue of 12.66 lakh equity shares.