MUMBAI: The Lok Housing board on Monday approved the issue of 5 million convertible warrants to promoters on a preferential allotment basis at the price of Rs 354 each for an aggregate amount of Rs 177 crore. The convertible warrant is of Rs 10 face value and will be converted into 1 share within a period of 18 months.
To enhance its long-term financial resources and thereby strengthening the financial structure, the company has already taken permission from shareholders for the proposed QIP issue to the extent of Rs 800 crore, which will dilute the promoters’ stake to below 50%.
Thus, the optional convertible warrant will help to maintain their holding above 50%. The company also said that it needs to augment funds to meet its capital expenditure programme for its existing as well as new growth opportunities and working capital requirement.
An extraordinary general meeting (EGM) of shareholders has been convened on February 8 to procure the necessary approvals. Lok Group has completed more than 18,000 houses in over 40 townships and housing complexes. It holds a land bank of over 550 acres in Mumbai, Vasai, Pune and Bangalore.
With major townships and projects executed in Thane, Kalyan, Ambernath, Virar, Mulund, Vikhroli, Andheri and Khar, and other suburbs of Mumbai. Lok Group is also in the process of acquiring 500-700 acres in an adjacent area. The group is also associated with the remaking of Mumbai.
To enhance its long-term financial resources and thereby strengthening the financial structure, the company has already taken permission from shareholders for the proposed QIP issue to the extent of Rs 800 crore, which will dilute the promoters’ stake to below 50%.
Thus, the optional convertible warrant will help to maintain their holding above 50%. The company also said that it needs to augment funds to meet its capital expenditure programme for its existing as well as new growth opportunities and working capital requirement.
An extraordinary general meeting (EGM) of shareholders has been convened on February 8 to procure the necessary approvals. Lok Group has completed more than 18,000 houses in over 40 townships and housing complexes. It holds a land bank of over 550 acres in Mumbai, Vasai, Pune and Bangalore.
With major townships and projects executed in Thane, Kalyan, Ambernath, Virar, Mulund, Vikhroli, Andheri and Khar, and other suburbs of Mumbai. Lok Group is also in the process of acquiring 500-700 acres in an adjacent area. The group is also associated with the remaking of Mumbai.
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