Pursuant to the in-principle approval of the Board of Directors ('Board') of Subros Ltd on August 9, 2018 for issue of 52,47,150 equity shares to DENSO Corporation, Japan ('DENSO') on preferential basis. The Board of the Company in their meeting held on 27th September, 2018 considered and approved the preferential issue and fixed the issue price at Rs. 400/- per equity share (including a premium of Rs. 398/-).
Post the preferential issue the shareholding of DENSO will increase to 20% as against the present 13%.
The Board also considered the following key benefits to the Company in this regard:
- Subros and DENSO will deepen the technical collaboration in order to contribute to the Customer's competitiveness strengthening in the rapidly growing Indian market.
- Subros to gain access to the new technologies to comply with India's environmental regulations with reference to fuel saving technologies and other regulatory changes.
- Subros to obtain access to DENSO's expertise to achieve global quality level in India
The board also approved convening the Extraordinary General Meeting of the Company to be held on 26th October, 2018 for seeking approval of the shareholders for approving the preferential issue.
Shares of SUBROS LTD. was last trading in BSE at Rs.319 as compared to the previous close of Rs. 340.3. The total number of shares traded during the day was 13347 in over 627 trades.
The stock hit an intraday high of Rs. 345 and intraday low of 318.3. The net turnover during the day was Rs. 4397146.