Southern Ispat to issue 5.5 Lakhs warrants

Southern Ispat Ltd has announced that the Board of Directors of the Company at its meeting held on June 08, 2007, has decided to issue 5.5 Lakhs warrants with option to convert the same into equity shares at a later date. 49 individuals have consented to subscribe to the issue. They are all non-promoters. The Company is complying with the guidelines of SEBI for preferential issue. The following conditions apply.

Relevant date for the purpose of fixation of issue price is fixed on June 20th. The option is excersiable within 6 months of the date of allotment of warrants. 1/10th of the value of the equity share as priced is payable by the subscriber to warrant. Each warrant will entitle the holder to subscribe for 1 equity share in the Company on payment of remaining 90% of the share amount. In case the warrant holders fails to exercise his option the money paid by him towards warrant will be forfeited by the Company. If any shareholder applies for warrant he should not have disposed his shareholding during the six months period prior to the relevant date otherwise he shall not be eligible for allotment of shares on preferential basis. Similarly if the warrant holder is already a shareholder the preferential allotment of shareholding of such allottees shall be under lock-in from the relevant date upto a period of 6 months from the date of preferential allotment. The shares allotted to the warrant holder shall be under lock-in for 1 year from the date of allotment of warrant. The issue will be under continuous listing by Stock Exchanges. The date of AGM for approval of the issue is July 20, 2007. The date of allotment of the warrant is on or after July 25, 2007.

The stock was trading at Rs.9, down by Rs.0.16 or 1.75%. The stock hit an intraday high of Rs.9 and low of Rs.8.71. The total traded quantity was 200 compared to 2 week average of 2817.

Source : Equity Bulls

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