Sadbhav Engineering Board approves preferential issue

The Board of Directors of Sadbhav Engineering Ltd at its meeting held on July 04, 2013, have considered and approved the proposal for raising of funds through issue of 80,00,000 convertible warrants at an exercise price of Rs. 115.75 per convertible warrant through preferential allotment basis to Mr. Vishnubhai M. Patel, Mr. Vikram R. Patel and Mr. Vasistha C. Patel (who are members of the promoter & promoter group of the Company) in accordance with the provisions of Chapter VII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and other applicable laws.

The Board also approved raising of funds by way of issue of equity shares and detachable warrants convertible into equity shares for cash for a sum not exceeding Rs. 125 crores (Rupees one hundred twenty five crores only) on a rights basis. Rights Issue will be made at a price of Rs. 100/- per equity share in the ratio of 1 (one) Equity Share alongwith 1 (one) detachable warrant for every 30 (thirty) equity shares held on the record date (to be fixed later for the Rights Issue purpose). Further, each detachable warrant issued alongwith the Equity Shares shall be convertible into 1 (one) equity share of face value of Re. 1/- each of the Company at an exercise price of Rs. 100/-. Further, the board or committee thereof formed for the said purpose shall be free to determine the terms of the Rights Issue and conversion of the warrants.

An Extra-ordinary general meeting of the members of the Company will be held on July 29, 2013 for obtaining the authority/ approval of the members of the Company for matters mentioned above.

4. Pursuant to the recommendation of Remuneration Committee, the board decided to reschedule the Vesting Period of 3rd installment & 4th installment of Options Granted under Sadbhav Employee Stock Option Scheme 2008 to July 15, 2013 from originally scheduled vesting date(s) of October 04, 2013 & October 04, 2014 respectively.

Shares of Sadbhav Engineering Ltd was last trading in BSE at Rs.91.65, down by Rs.1.25 or 1.35%. The stock hit an intraday high of Rs.96 and low of Rs.78.

The total traded quantity was 1.38 lakhs compared to 2 week average of 0.30 lakhs.

Source : Equity Bulls

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