APL Apollo Tubes today said it has alloted nearly 16.42 lakh preferential convertible warrants to its promoter group entity APL Infrastructure Private Limited, which will increase the latter's stake to 45.32 per cent in the company.
"The Board of Directors, at their meeting held today, allotted 16,41,953 preferential convertible warrants to APL Infrastructure Private Limited, a promoter group entity," the company said in a statement.
The statement added, "this allotment would result in increase in promoter's shareholding from existing 40.89 per cent to 45.32 per cent on fully diluted equity."
APL Apollo Tubes is a leading manufacturer and exporter of steel pipes and tubes, hot-dipped and pre-galvanized steel tubes among others. It has five manufacturing facilities, including two near New Delhi and one near Bangalore.
In November, the company has acquired Lloyds Line Pipes Ltd of Maharashtra.
The proceeds from the issue would be utilised by the company towards its ongoing expansion programme, the statement further said, adding that "the warrants will be alloted at a premium of Rs 166 per share."
Preferential convertible warrants are one of the means to convert a predetermined amount into company's equity.
The approval for issuing warrants to the promoter group entity was given by shareholders to the company at its extraordinary general meeting held on October 18, 2010, the statement added.
Its shares closed today at Rs 145.05 a piece on the Bombay Stock Exchange, up 2.65 per cent from the previous close.
