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Murugappa Group's Cholamandalam Investment and Finance Company Ltd has informed BSE that its Board of Directors has approved conversion of compulsorily convertible preference shares (CCPS) allotted to Dynasty Acquisition (FDI) Ltd, a company backed by funds advised by Apax Partners, into equity shares.
Last year, the company announced raising Rs 500 crore from Dynasty Acquisition allotting 5,00,00,000 shares at 1% CCPS of Rs 100 each and as per the terms of issue, the CCPS was converted into 1,22,85,012 equity shares of Rs 10 each, at a conversion price of Rs 407 per equity share at the end of 12 months from the date of allotment.
The company then announced that the capital infusion is to help it to meet the business growth and augment the Tier 1 capital adequacy ratio (CAR).
The company will be applying for the final listing of the above equity shares on NSE and BSE.
