The board of directors of Asian Electronics, which met on November 25, 2005, approved a proposal to raise Rs 84.36 crore by issuing shares, warrants and fully convertible debentures (FCDs).According to a release issued by Asian Electronics to the BSE today, the meeting approved proposals to issue up to 4,40,000 equity shares of Rs 10/- each and 11,70,000 equity warrants to Shah Investment Financials Developments & Consultants, an entity belonging to the promoter group, at Rs 240 per share.The meeting also approved a proposal to issue up to 19,05,000 FCDs of Rs 240 each. "The FCDs shall carry an interest @ 6% p.a. payable for 12 months from the date of allotment. Each FCD will be compulsorily converted into one equity share of Rs 10/- each at Rs 240/- per share (including premium of Rs 230 per share) on the expiry of 12 months from the date of allotment," the release added.Shah Investments Financials Developments & Consultants will pay an amount equivalent to 10% of the exercise price of equity shares on application for subscribing to the warrants. "Out of the total equity warrants, 5,70,000 warrants shall be exercised in one or more tranches on or after April 1, 2006 but on or before March 31, 2007, and the balance 6,00,000 warrants shall be exercised in one or more tranches on or after April 1, 2007 but before the expiry of 18 months from the date of allotment," the release added.The shares, FCDs and share warrants are subject to lock-in as prescribed by SEBI's guidelines for preferential issues, the release said.The board also resolved to convene an extra-ordinary general meeting (EGM) of shareholders on December 23, 2005 to approve the proposals, the release said.
