Hindustan Motors gains on fund raising plans via preferential issue

The company board is meeting on Sep 29 to consider allotment of shares on preferential basis

Hindustan Motors gained 2% after scheduling  a board meeting to consider allotment of shares on preferential basis.

The board will meet on September 29 to consider allotment of Equity Shares and Non-Convertible Debentures to the lenders (Banks and Financial Institutions) on preferential basis as per Corporate Debt Restructuring Empowered Group approval at its meeting held on June 28, 2014, the company said in a release.

It may be recalled that on August 5, the board had approved issue of up to 2,38,87,300 Equity Shares of Rs. 5/- each at a price of Rs. 9.44 (including premium of Rs. 4.44) aggregating to Rs. 22,54,96,112/- and (b) Issuance of up to 20,53,00,000 - 10.25% Secured Non-Convertible Debentures of Re. 1/- aggregating to Rs. 20,53,00,000/- on private placement basis to the lenders (Bank and Financial Institutions) towards part payment of recompense of interest amount as approved by Corporate Debt Restructuring Empowered Group at its meeting held on June 28, 2014.

The stock opened at Rs 8.75 and hit a high of Rs 8.88 on BSE. Around 2.7 lacs shares changed hands on the BSE and NSE so far.