Bhagyanagar to issue warrants

Hyderabad-based Bhagyanagar India Limited (BIL), an enterprise of diversified Surana group, is raising Rs 50.6 crore through the issue of 11.5 million share warrants of a face value of Rs 2 each at a price of Rs 44 on preferential basis to two strategic investors and one of its group companies.

The board has approved allotment of 7.2 million share warrants to Foster Capital Ventures Limited, 3 lakh warrants to Trimurthi Advisory Services Private Limited and 4 million warrants to its group company, Bhagyanagar Ventures Limited.

BIL managing director, Narendra Surana, said the money was being raised to part finance the company's Rs 175 crore information technology park coming up at Uppal in Hyderabad. The 1 million sft project, spread over an area of 7 acres, would be completed in 18 months. He said the warrants would be convertible into equity shares in 18 months.

Post conversion, Foster would have 9 per cent and Trimurthi would have 0.5 per cent stake in BIL. The shareholding of Bhagyanagar Ventures would be 5 per cent.