Bombay Dyeing to raise Rs119cr via warrants

Wadia group flagship Bombay Dyeing today said it would raise over Rs 119 crore through the issue of convertible warrants to Bombay Burmah Trading Corporation (BBTCL), a promoter group company.

A letter of offer was issued to BBTCL on August 28, for the said number of warrants and BBTCL has accepted the above offer and has paid 10% of the price fixed as per SEBI guidelines, Bombay Dyeing said in a filing to the Bombay Stock Exchange.

The committee of directors at its meeting today approved the allotment of 19.30 lakh warrants convertible into equal number of shares, representing up to 5% stake in the company at Rs 616 each that would be issued to BBTCL on a preferential basis.

In August, Bombay Dyeing had received shareholders' approval for the said warrants issue.

Earlier, BBTCL in a communique to the BSE had said it would invest Rs 300 crore in Bombay Dyeing in one or more tranches.

The promoter group company, had also sought shareholders' approval through a postal ballot for investing the amount to acquire the stake.

Shares of Bombay Dyeing were trading at Rs 611.45, up 4.66% on the BSE in afternoon trade.