Pipavav allots one cr convertible warrants to promoter firm

Pipavav Defence and Offshore Engineering today said it has allotted one crore warrants, worth Rs 78 crore and convertible into equal number of shares, to one of its promoter entities.

The warrants have been allotted to Grevek Investments and Finance Pvt Ltd by the Securities Allotment and Transfer Committee of the company's board, Pipavav Defence said in a regulatory filing.

"...The the Securities Allotment & Transfer Committee has allotted one crore convertible warrants of face value of Rs 78 each for cash to Grevek Investments and Finance, one of the promoters of the company," it said.

A warrant is a security which entitles the holder to convert them into equity shares at a fixed price within the stipulted date.

Each warrant, the company said, is convertible into one fully paid-up equity share of the company of Rs 10 each at any time prior to 18 months from the date of allotment.

The board committee decided on the warrant allotment at its meeting held on October 12, pursuant to a special resolution pased by the company's shareholders at their Annual General Meeting on October 5 and an in-principle approval received from the stock exchanges.

As on November 14, Grevek Investment and Finance held about 1.23 crore shares in the company, accounting for a 1.79% stake. All the promoters together held 42.17% stake in the company as on November 14, as per the latest shareholding pattern data available with the BSE.

Pipavav's scrips were trading at Rs 68.60 apiece around 1320 hours, down 0.36% from its previous closing at the BSE.