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FCS Software to allot convertible warrants
By siliconindia
Mumbai: At an extraordinary general meeting, the members of FCS Software Solutions (FCSSOFT.NS), an IT services provider Based in Noida, have accorded the company board to allot 25,00,000 convertible warrants on preferential placement basis, provided that the aggregate number of resultant equity shares of the company to be issued against such warrants shall not exceed 25,00,000 fully paid up equity shares of the face value of Rs 10 each at a premium of Rs 81 against the convertible warrant of Rs 91 each, aggregating to Rs 227.5 million, the company informed Bombay Stock Exchange. Usually, companies issue warrants to enhance the future value of their stock to the people holding it.
The company had posted excellent results for the year ending March 31, 2008 with its PAT climbing 40 percent YoY to Rs 3241.04 lakhs from Rs 2308.97 lakhs. The company's Net Sales for FY08 stood at Rs 20418.42 lakhs, a hop of 32 percent as against Rs 15434.95 lakhs last year. The fully diluted Earnings Per Share (EPS) for the year ending March 31, 2008 was Rs 22.47, up from Rs 16.18 last year.
If the news reports are anything to go by, more companies are planning to allot convertible warrants, thanks to a clutch of promoters. Companies including Bombay Dyeing, Martin Burn and Eveready Industries have notified the stock exchanges their plans to launch these instruments.
Bombay Dyeing has proposed to raise Rs 119 crore or so through the issue of convertible warrants to group outfit Bombay Burmah Trading Corporation. In fact, a letter of offer was issued to the latter in late August. Bombay Burmah has accepted the offer. Earlier, there was a special resolution passed by shareholders to issue up to 19,30,000 warrants at Rs 616 per share.
Martin Burn informed that its board meeting on Friday has okayed the issue of 9.9 lakh equity share warrants on a preferential basis to a group of strategic investors.
Martin Burn, in fact, had earlier stated that its board (which met in mid-August) could not then finalize the terms for the issue of equity shares/warrants or any other instrument convertible into equity shares on a preferential basis in line with the relevant regulation.
Eveready Industries also has plans to issue up to 45 lakh convertible warrants with an option to the holder of each warrant to apply for and be allotted one equity share of Rs 5 each.
