Mercator board okays 3:2 bonus issue

The board of directors of Mercator Lines today approved a proposal to issue bonus shares.

According to a release issued by Mercator to the BSE, the company has fixed a ratio of 3:2 for the issue of bonus shares, ie three free shares for every shareholder holding two equity shares.

The company's board has also approved a hike in the investment limit by FIIs upto 70% of the paid-up equity share capital of the company.

Further the board has also accepted a proposal to to raise $ 75 million from domestic or internatinal markets by public or private offerings (including ADR/ GDRs / Bonds/ Equity shares).

The company will also issue 80,00,000 warrants carrying entitlement / option to apply for equal number of equity shares, on preferential basis to the promoter's group / associate Company viz, AHM Investments, in accordance with SEBI Guidelines for preferential issue.

The company's authorised share capital will be increase to Rs 35 crore from the present Rs 25 crore by creating additional 10 crore equity shares of Re 1/- each.