The warrants were issued in September 2005 and the conversion was to take place at Rs 197 a share by March 2008.
At an offer price of Rs 200 a share, GHCL will have a market capitalisation of around Rs 2000 crore.
Dalmia will continue to be the group chairman even if Al Rostmani gets hold of majority stake, the source said. Al Rostmani might put a couple of directors on the board if the deal gets through.
"GHCL promoters have expressed their interest in selling 15 per cent stake. Currently, Al Rostmani is carrying out the due deligence," sources said. The stake dilution will enable GHCL to explore organic and inorganic growth opportunities in order achieve global ambitions. "GHCL might go for more acquisitions in Europe, especially in the retail sector," sources said.
GHCL, which started off as a soda ash company, later diversified into home textile manufacturing. In 2006, GHCL acquired Rosebys, UK's largest home textile retail chain, and entered the specialised retailing business overseas.
It followed it up with the acquisition of institutional textile distribution firms in the US. The idea was to become a fully integrated home textile company with presence across spinning, weaving, product design and development, sourcing and distribution to retail stores.