Kirloskar Ferrous to issue shares on rights basis at Rs.35 and warrants

Kirloskar Ferrous Industries Ltd has announced that the Rights Issue and Allotment Committee ("Committee") of the Company at its adjourned meeting held on December 08, 2006 discussed and approved the following terms in relation to the proposed issue of equity shares along with detachable warrants on a rights basis ("Rights Issue"):

1. Issuance of 65,000,160 new equity shares of Rs 5/- each at a premium of Rs 30/- per equity share aggregating to Rs 35/- per equity share in the ratio of 9 equity shares for every 10 equity shares held by each shareholder as on the Record Date and for each Right Share, the allottees will receive 1 detachable warrant.

2. Each detachable warrant shall be convertible, at the option of the warrant holder, into 1 equity share of Rs 5/- each and at a price of Rs 35/- per equity share, at any time after a period of 12 months but not exceeding 36 months from the date of allotment of such warrants. The warrants shall automatically lapse if not converted within such time.

3. The Company also reserves the right to make a one-time call for compulsory conversion of all outstanding warrants into equity shares to be exercised within a period of 30 days from the date of the notice failing which such warrants shall lapse.

4. All other terms and conditions for the Rights Shares and detachable warrants shall be as approved by the Board of Directors at its meetings held on May 24, 2006 and September 28, 2006.

Source : Equity Bulls

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