Financial Daily from THE HINDU group of publications
Thursday, May 09, 2002
Financial Daily from THE HINDU group of publications Thursday, May 09, 2002 |
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Corporate
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Rights Issues BILT finalises price for rights issue Our Bureau
NEW DELHI, May 8 A COMMITTEE of directors of Ballarpur Industries Ltd (BILT) has finalised the price at which the company proposes to issue equity shares on a rights basis. At a meeting on Tuesday, the committee approved the letter of offer that proposed the issue of up to 5,72,31,176 equity shares of Rs 10 each at a premium of Rs 28 per share or up to 71,53,897 fully-convertible debentures (FCDs) of face value of Rs 304 per FCD aggregating Rs 217.5 crore (shareholders have the right to subscribe to either one). The entitlement ratio in the case of equity shares is 8:10 at a price of Rs 38 per share. The entitlement ratio for FCDs is 1:10. Interest on the FCD would be 9.5 per cent, payable semi-annually. The tenure of debenture is one day less than 18 months. The conversion price would be at 20 per cent discount to the average closing price on the Bombay Stock Exchange for the preceding 3 months from the conversion date. While the floor conversion price is Rs 38 per share, the ceiling conversion price is Rs 70 per share. There is a put option available every 6 months to FCD holders to convert FCDs into equity shares at Rs 70 per share.
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