Himatsingka Seide to issue warrants to promoters

The Board of Directors of Himatsingka Seide Ltd at its meeting held on August 22, 2007, has approved the proposal for a Preferential Issue of Warrants, subject to requisite approval by the Shareholders to the Promoters / Promoter Group. The proposal envisages issuance of up to 58,00,000 warrants convertible into equity shares any time within 18 months from the date of issue of the warrants. It will entitle them to an equivalent number of equity shares of the Company of the face value of Rs 5 each.

Pricing of the issue will be governed by the Guidelines for Preferential Issue in terms of Chapter XIII of SEBI (Disclosure & Investor Protection) Guidelines, 2000 or Rs 130 per warrant, whichever is higher. The minimum price of Rs 130/- also coincides with the pricing of the USD 60 MM GDR issue during 2005-06.

The company expects to raise about Rs 75 crores through the issue of these warrants. The proceeds will form part of the corpus that will fund future acquisitions, ongoing green field investments in manufacturing and retail besides general corporate requirements of the significantly scaled up organization.

The Stock closed the day at Rs.114.95, down by Rs.1.80 or 1.54%. The stock hit an intraday high of Rs.117.50 and low of Rs.112.60. The total traded quantity was 11663 compared to 2 week average of 10756.

Source : Equity Bulls

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