Don’t miss the latest developments in business and finance.

Prakash Inds allots warrants to Barclays

PRIVATE EQUITY WATCH

Image
BS Reporter Mumbai
Last Updated : Feb 05 2013 | 1:51 AM IST
New Delhi-based diversified company Prakash Industries on Monday announced preferential issue of warrants worth Rs 44.44 crore to Barclays and a few domestic investment firms.
 
The Rs 1,000-crore firm said it would allot 5.55 million warrants to Barclays and "others", subject to the permission of its shareholders. The warrants would be priced at Rs 80 apiece and they could be converted into equal number of equity shares within 18 months.
 
Last year, Prakash Industries posted a net profit of Rs 133 crore on a turnover of Rs 1,048 crore. It is engaged in the steel, power, PVC pipes and black and white picture tubes businesses. 
 
M&A DEALS FROM AUGUST 17 TO 23
BidderTargetSectorValueStake% Type
Noor Investment, Ikarus Petro, Kuwait  Privatisation Project Investment, US-based
Lamb Company, NRI InvestorDelhi Stock ExchangeFinancial ServicesNA21PE/VC
Lehman BrothersECL FinanceFinancial Services4526PE/VC
The Blackstone GroupGokaldas ExportsConsumer Goods11650.1PE/VC
Greylock Partners and other unnamed InvestorsTechProcessInternet/ EcommerceNANAPE/VC
Indecomm Global ServicesBrainvisa TechnologiesIT/ITeSNA100Strategic/domestic
Dubai VenturesTime BroadbandServicesInternet/ EcommerceNA40Strategic/domestic
Primus RetailWeekenderConsumer Retail9.5100Strategic/domestic
Standard CharteredUTI SecuritiesFinancial Services3649Strategic/inbound
Baosteel trading and Visa ComtradeVisa BaoIndustrial Products
and Services
NA49Strategic/inbound
Cobra BeerRegal BreweriesConsumer GoodsNA76Strategic/inbound
Educomp Solutions LimitedAuthorgen TechnologiesEducation/ ElearningNA51Strategic/outbound
ITC's Russell CreditTechnico Pty. LimitedAgri- Biotechnology100Strategic/outbound
JSW SteelJindal United Steel Corporation, Saw Pipes (US), Jindal EnterprisesSteel94090Strategic/outbound
ORG InformaticsSatellite business of Belgacom TelecommunicationsNA100Strategic/outbound
Reliance CapitalVictory Transformer Transformer & Switchgear LimitedIndustrial Products and Services7.526 
Source: Public information and PricewaterhouseCoopers analyses               NA=not available
 
The company did not divulge the identity of other investment companies.
 
When contacted, Prakash Industries' company secretary Manoj Kumar Agarwal said they would furnish other details to the stock exchanges later. Agarwal declined to comment on the speculation that a big conglomerate was among the investment companies subscribing to the preferential issue.
 
According to Agarwal, the company would seek the shareholders' permission on the proposed transaction at an extra-ordinary general meeting on September 19.
 
Under the capital market regulations, the investors will have to fork out 10 per cent of the total investment at the time of subscription of the issue and the remaining 90 per cent at the time of conversion.
 
Post conversion of the warrants, the promoters' stake in the company will come down. However, the exact details of the promoters' shareholding, post conversion of warrants, could not be ascertained. Agarwal said, "We will inform the details in the notice of the EGM." The promoters now hold 67 per cent, he said.
 
Share prices of Prakash Industries jumped 5 per cent "� the maximum permissible increase of the stock in a trading session "� to Rs 87.70 on the BSE.

 

Also Read

First Published: Aug 28 2007 | 12:00 AM IST

Next Story