Shasun may allot convertible warrants

Shasun Pharmaceuticals' board of directors on Friday will consider the allotment of convertible warrants on preferential basis to the promoters and directors. The company at its meeting held on August 19 decided to issue 15,00,000 warrants on preferential basis to promoters / promoter group(s) and directors with each warrant convertible into one equity share of the company. The warrants will amount to Rs 11 crore, said Mr S. Abhaya Kumar, Managing Director. The funds will go towards Shasun's expansion plans, said Mr Kumar. Shasun plans to invest Rs 100 crore in two years. About $6 million was raised through external commercial borrowings. The rest is expected to be met through internal accruals. The company's debt position as of today is around Rs 330 crore, including its UK subsidiary. “We expect to generate enough profits to reduce debt,” said Mr Kumar. By the end of the year, Shasun hopes to reduce debt to Rs 230 crore. Shasun's scrip closed at Rs 63.40 on the BSE.