R-Infra to allot shares worth Rs 4,000 cr to promoters
Anil Ambani-led Reliance Infrastructure will allot shares worth around Rs 4,000 crore to promoter entity AAA Project Ventures that holds 42% stake in the company. HT reports. Promoter powerbusiness Updated: Jan 07, 2011 01:51 IST
Anil Ambani-led Reliance Infrastructure will allot shares worth around Rs 4,000 crore to promoter entity AAA Project Ventures that holds 42% stake in the company.
The move comes after AAA Project Ventures exercised its option to convert the 4.29 crore warrants (convertible into equal number of shares) allotted to them in July 2009 for Rs 928.9 per share. The conversion price is thus a substantial premium to the company's Thursday's closing price of Rs 859.5.
"The Committee of Directors (Allotment) of the company shall meet on January 07, 2011 to consider allotment at a price of Rs 928.9 per share inclusive of a premium of Rs 918.9 per share of equity shares of Rs 10 each to AAA Project Ventures Private Limited, being the promoter company, pursuant to exercise of options attached to warrants (issued on July 09, 2009)," the company said in a statement to the Bombay Stock Exchange.
The conversion of warrants comes now since it would expire for conversion after January 9, 2011. The warrants carried an option to convert into shares after October 9, 2009 but not later than 18 months from the date of allotment of warrants, which completes on January 9, 2011.
The infrastructure firm saw its net profit rise to Rs 1,519.4 crore for the year ended March 31, 2010, compared to Rs 1,353.3 crore for the previous year.
Its total income rose to Rs 15,689.7 crore during the period from Rs 13,596.4 crore in the previous year.
First Published: Jan 06, 2011 22:17 IST