The shareholders of MosChip Technologies have approved the preferential issue of equity shares and warrants at the extraordinary general meeting held on Wednesday. The company expects to complete the allotment of shares by the end of April 2002. The issue of warrants will be done after approvals are received from SIA and the Reserve Bank of India. Hence, the issue of warrants could take slightly longer.
The shares / warrants are proposed to be issued to ESS Technology Inc (US), Flextronics Semiconductor Inc (US), Silutions Technologies Inc (US), UTI A/c. India Technology Venture Unit Scheme and S Sivakumar.
A total of 3,160,000 equity shares and 950,000 warrants are proposed to be issued to these investors at a price of Rs 30 per share. In addition, the company is also intending to issue another 1,000,000 equity shares to other investors with whom talks are in progress.
The issue price for these shares will also be Rs 30. This will enable the company to mobilise another Rs 30 million.
The paid up equity share capital will increase from Rs 18.83 crore to Rs 22.99 crore after the issue of 4,160,000 equity shares, and further to Rs 23.94 crore when all the warrants are exercised.
The total amount that will be raised from the Preferential Issue of 4,160,000 equity shares and 950,000 warrants will be Rs 15.33 crore.
These funds will be utilised to meet the product development expenditure, long-term working capital needs, capital expenditure etc, as many of the products are now reaching the final stages of design cycle.
