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Denim maker, Nandan Denim Limited (NDL) on Wednesday announced its plans to issue 50 lakh convertible warrants on preferential basis to foreign investors at Rs 200 each including premium of Rs 190.
The company plans to raise Rs 100 crore from the warrants issued to fund its growth plans, investment in proposed subsidiaries, meet long term working capital requirement and improve capital structure, etc, NDL informed in a statement here.
Further, the company will be issuing 25 lakh fully convertible warrants each to Foreign Portfolio Investors, LTS Investment Fund Ltd and LGOF Global Opportunities Ltd at Rs 200 each.
The FII & FPI holding stands at 11.02 per cent as on June 2016, while the promoter group holding stands at 58.27 per cent.
Post issue of the 50 lakh warrant, holding of FII & FPIs will increase to 19.70 per cent and promoter holding will come down at 52.78 per cent.
Company has received shareholders approval for the same at the Annual General Meeting held on September 28, 2016. This will be the 2nd warrant issue by Nandan Denim Ltd.
In September 2015, Company had issued 25 lakh convertible warrants to FII namely Polus Global Fund which has been converted in to equity shares at Rs. 200 per share upon receipt of Rs. 50 crore towards the consideration.
The warrant holders shall be entitled to convert the warrants into equal number of equity shares of face value of Rs 10 each, on receipt of entire amount in one or more tranches, within a period of 18 months from the date of the allotment.
Deepak Chiripal, CEO, Nandan Denim Ltd said, "The Company has the strategic vision of emerging as a global leader in the textile industry. To fast track this strategic vision, the Company requires the infusion of the additional funds."
The conversion price of Rs 200 per share represents premium of over 57 per cent to current share price of Rs 127.05 per share (end of trade on Tuesday, September 27, 2016).
For FY 2015-16, Nandan Denim Ltd posted net profit of Rs. 63.32 crore on net sales of Rs. 1156.72 crore.
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