Garden Silk Mills rose 1.74% to Rs 35 at 11:23 IST on BSE after the firm said its board will meet on 19 March 2014, inter alia, to consider and approve the proposal of conversion of share warrants into equity shares by promoters.
The announcement was made after market hours on Tuesday, 11 March 2014.
Meanwhile, the S&P BSE Sensex was up 65.76 points or 0.3% at 21,892.18.
On BSE, so far 1,371 shares were traded in the counter as against average daily volume of 2,418 shares in the past two weeks.
The stock hit a high of Rs 35.40 and a low of Rs 35 so far during the day.
Garden Silk Mills said that a meeting of its board of directors will be held on 19 March 2014, inter alia, to consider and approve the proposal of conversion of share warrants into equity shares consequent to the right of conversion exercised by the warrant holder in terms of SEBI (ICDR) Regulations 2009.
Garden Silk Mills had earlier issued and allotted 13.70 lakh share warrants of Rs 10 each at Rs 51.07 per warrant for an aggregate amount of Rs 7 crore in favour of promoters on preferential basis. The aforesaid warrants were issued on preferential basis pursuant to the provisions of Section 81(1A) of the Companies Act 1956 and in accordance with the provisions of Chapter VII of SEBI (ICDR) Regulation 2009.
As per the terms of issue and conversion, the warrants shall be converted in one or more tranches, at the sole option of the warrant holder but not in any case more than eighteen months from the date of allotment, Garden Silk Mills said. The relevant date, as per the SEBI (ICDR) Regulation 2009, as amended up to date, for the determination of price of equity shares to be issued and allotted upon exercise of the right of conversion attached to the warrant will be 30 days prior to the date on which the holders of warrants exercise their rights to apply for the equity shares, the company said.
Garden Silk Mills reported a net loss of Rs 41.51 crore in Q3 December 2013, higher than net loss of Rs 23.63 crore in Q3 December 2012. Net sales declined 19.1% to Rs 759.01 crore in Q3 December 2013 over Q3 December 2012.
Garden Silk Mills is engaged in design and creation of high-quality textile prints, fabrics and textile intermediates for consumers and businesses.
Powered by Capital Market - Live News
