Man Industries extends fall on equity dilution concerns

Bank of New York Mellon, depository to the GDRs, called upon GDR holders to convert the GDR?s into shares on or before November 30, 2012

Man Industries is trading lower by 5% at Rs 133, extending its previous day’s 10% fall, after the company said the Dubai Financial Services Authority (DFSA) has suspended the Global Depository Receipts (GDRs) of the company from its official list.

“The company has received a communication dated November 20, 2012 from DFSA to the effect that the GDR’s issued by the company have been suspended from trading w.e.f. November 20, 2012,” Man Industries said in a filing.

Bank of New York Mellon, depository to the GDRs, had informed the concerned GDR holders vide its letter dated September 6, 2012 about their resignation as Depository and called upon them to convert the GDR’s into shares on or before November 30, 2012.

As on date GDRs numbering 4.45 million (7.46% of the capital of the company) remain outstanding which are equivalent to shares numbering 4.45 million as underling security.

The stock opened at Rs 134 and hit a low of Rs 127 on the NSE. A combined 19,234 shares have changed hands in the counter so far on both the exchanges.