The board of Pentamedia Graphics Ltd, the entertainment graphics company, has approved the allotment of 14.5 million global depository receipts (GDRs).
These will be allotted at the rate of $1.4 per GDR (equivalent to one equity share) for cash to European investors.
A company spokesperson said the GDRs would be allotted to two Europe-based financial institutions -- Numero Uno Investments and Peigh Investments.
Peigh Investments would subscribe to 9.5 million GDRs, while Numero Uno would subscribe to 5 million GDRs.
The company stated that sum realised, $20.3 million, would be used to fund the organic and inorganic growth plans of the company, for acquiring distribution rights in various territories and for meeting working capital needs.
After the allotment of the GDRs, the share capital of Pentamedia would increase to 74.5 million equity shares of Rs 10 face value. Post issue, the promoter's stake (Vesa Holding) would come down by 0.60 per cent to 2.5 per cent of the total equity.
It may be noted the company had already allotted 23.4 million GDRs between 1996 and 2001. In the previous two allotments, Pentamedia had issued 12.7 million GDRs to two entities -- Digisec and E-pick Associates -- and 3.3 million towards stock acquisition of Improvision Technologies.
Pentamedia officials, however, claimed that promoter enjoyed the support of 14 per cent of the total equity even after the issue of 14.5 million GDR.
The listing agents for the GDRs are Deutsche Bank and the legal counsel is Fairmays, London. These GDRs along with the existing GDRs of Pentamedia Graphics would be traded at the Luxembourg Stock Exchange, company press release said.
