Globus Spirits surges on preferential issue to promoter at premium

The board has approved allotment of 763,359 warrants at a price of Rs 140/- per warrant to promoter group entity M/S. Chandbagh Investments Limited.

Globus Spirits has surged over 14% to Rs 119 on the National Stock Exchange (NSE), after the breweries and distilleries manufacturer said that its board has approved the allotment of warrants worth of Rs 11 crore to promoter group at a price of Rs 140 per warrant.

“The board of directors has approved allotment of 763,359 warrants at a price of Rs 140/- per warrant to promoter group entity M/S. Chandbagh Investments Limited,” Globus Spirits said in a statement.

The board also approved allotment of 5.03 million, 4.75% Cumulative Compulsorily Convertible Preference Shares (CCCPS) at a par value of Rs 140 per CCCPS to M/s. Templeton Strategic Emerging Markets Fund IV, L.D.C.

The said warrants and CCCPS shall convertible into one equity share of the face value of Rs 10 each against each warrants and CCCPS within a period of 18 months from the date of allotment, it added.

The stock opened at Rs 107 and hit a high of Rs 121 on NSE. A combined 1.08 million shares have already changed hands on the counter till 0955 hours against an average less than 100,000 shares that were traded daily in past ten trading days on NSE and BSE.