Shakti Pumps surges as investor plans to convert warrants at premium

Stock jumps 8% to Rs 57.20

Shakti Pumps has surged 8% to Rs 57.20 extending its previous day’s 6% rally after the company said it will allot 1.2 million shares M.L. Securities and Finance, the person other than promoters, at Rs 88 per share (adjusted to bonus shares) on conversion of warrants.

“The board of directors of the company will meet October 11, 2012 to consider the allotment of 600,000 equity shares of Rs 10 each at a premium of Rs 166 (pre-bonus issue) against warrants convertible into equity shares to M/s M.L. Securities and Finance Private Limited,” Shakti Pump said in a filing.

The board will also consider the allotment of additional 600,000 shares as bonus shares of Rs 10/- each to M/s. M.L. Securities and Finance Private Limited.

The company had issued bonus shares in the ratio of 1:1 to their shareholders during April 2011.

The stock opened at Rs 53.95 and hit a high of Rs 57.50 on the NSE. As many as a combined 119,940 shares have already changed hands on the counter against an average sub 50,000 shares that were traded daily in past two weeks.