The Hindu Business Line : Samtel to issue 2.2 m warrants to promoters

As per the board's decision, the warrants have the option to be converted into equity shares within 18 months from the date of allotment at Rs 90.18 per share (Rs 10 paid-up and Rs 80.18 premium).

The decision will be subject to shareholders' and statutory approvals. The conversion would result in a cash inflow of Rs 19.8 crore to Samtel, which will be utilised for the current expansion and business plans, the company said in a statement here. The company is setting up its fourth plant in Ghaziabad for manufacturing picture tubes for 29 inch CTVs. It also has plans to set up another plant at Kota for manufacturing picture tubes for 14, 20 and 21 inch CTVs.

The promoters will subscribe by paying 10 per cent of the issue price of the warrant on issue of warrants, 10 per cent after six months and the balance on conversion into equity shares of the company. The warrants will be converted into equity shares within a period not exceeding 18 months.

Assuming complete conversion, they will represent 4.14 per cent of the company's fully diluted capital, assuming complete conversion of compulsorily partly convertible debentures and warrants into equity shares as per the preferential issue made to ICICI Ventures earlier this year.

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