Shares of Xpro India traded 4 percent down after the company proposed to allot preferential warrants to Ashish Kacholia and others at an exercise price of Rs 975, at a discount of about 18 percent to the last closing price of Rs 1,186.
In an exchange filing on December 19, the company said that it has decided to allot 14.35 lakh warrants to subscribers. Kacholia, who holds 3.91 percent stake in it, was allotted 1.1 lakh warrants. Other major investors are three funds of Malabar Investments and Promoters.
These warrants may be exercised in one or more tranches within 18 months from the date of allotment of the warrants. Subscribers need to pay 35 percent of the issue price on allotment, while the rest can be paid over 18 months from the date of allotment.
Xpro India aims to raise Rs 140 crore through this mode. As of 2pm, shares of the company declined 4 percent to Rs 1,138 on the BSE.
In another announcement, Xpro India said its board has approved a capital raising plan through which the company intends to raise up to Rs 150 crore through a Qualified Institutions Placement (QIP).
“The key intent of the Board is to further strengthen the capital resource base of the company in light of the growth plans that are in motion, and the underlying strategic vision of being a focused player of consequence in the dielectric BOPP film business in the global space, besides consolidating our domestic first-mover status,” the company said in a statement. .
The management is confident of being on track with the timelines for the expansions as detailed in the last annual report. The company is also setting up a subsidiary in the United Arab Emirates (UAE).
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