Vimta Labs to issue shares on preferential basis

Vimta Labs Ltd has informed that its members at the extraordinary general meeting (EGM) of the company held on March 18 have accorded authority to the board to issue and allot on a preferential basis 8,25,432 equity shares of Rs 10 each at a price of Rs 950 (equivalent to 41,27,160 equity shares, at a price of Rs 190 per equity share, on sub-division of each equity share of the company of the face value of Rs 10 each into 5 equity shares of the face value of Rs 2 each) amounting to Rs 78.41 crore as a first tranche of the total proposal of Rs 125 crore.

Of the total shares, 2,33,079 equity shares of Rs 10 each at a price of Rs 950 per share (equivalent to 11,65,395 equity shares of Rs 2 each on sub-division of shares, at a price of Rs 190 per share) would be issued to India Fund Inc of New York. An equal number of shares at the same price would be issued to Voyager Fund Mauritius Ltd of Mauritius.

This apart, the company stated, 93,231 equity shares would be issued to Minivet Ltd of Mauritius and 1,77,362 equity shares would be issued to Franklin Templeton Asset Management (India) Pvt Ltd "� Franklin India Smaller Companies Fund of Chennai. An additional 88,681 equity shares would be issued to Franklin Templeton Asset Management (India) Pvt Ltd "� Franklin India Prima Fund.

The shareholders also authorised the board to increase the limit of investment by foreign institutional investors (FIIs) either by direct purchase or acquisition from the open market under the Portfolio Investment Scheme under Foreign Exchange Management Act, from 24 per cent to 49 per cent of the paid-up equity share capital of the company, subject to necessary approvals and provisions.