Fortune EGM on Jan 19 to consider pref issue

The company proposes to issue five lakh warrants each to its managing director C K Shastri, and two other directors, Jayant Dwarakanath and Tikam Sujan.

Abacus Software Group and Venus Capital Management of US will be issued two lakh warrants and 3.25 lakh warrants respectively. Business Solution Inc, a UAE based company will be issued 2.75 lakh warrants.

Each of the warrant will be convertible into one equity share of the Rs 10 face value each at a price of Rs 29. The relevant date for determining the issue price of equity shares arising out of conversion of warrants will be one month prior to the date of EGM on January 19 i.e., December 19,2003.

Post preferential offer, the company's equity will increase to Rs 13.27 crore from the existing Rs 10.97 crore.

The promoters's stake in the enhanced equity will rise marginally to 20.66 per cent from 20.43 per cent, while the stake of NRIs and overseas corporate bodies will rise to 22.7 per cent from 15.61 per cent.

General public share will come down from 54.06 per cent to 48.46 per cent.

EGM will also seek the approval of shareholders for the proposed issue of GDRs or ADRs to the extent of $ 20 million. The GDR/ADR issue proceeds will be utilised for expansion and making strategic acquisitions.

EGM will also consider increasing the company's authorised capital to Rs 50 crore from the existing Rs 12 crore.