Mumbai: Consumer electronics company Videocon Industries on Monday said it will raise over Rs200 crore through issue of warrants on preferential basis to media conglomerate Bennett, Coleman & Company Ltd (BCCL).
In a filing to the Bombay Stock Exchange, Videocon Industries said the board has approved the issuance of over 1,17,65,000 crore warrants, which would be converted into equal number of equity shares, at a price of Rs170 a piece, to Bennett, Coleman & Company.
Upon conversion, Bennett, Coleman & Co’s holding in Videocon Industries would go up to 6.13%. As of December quarter the media firm held 1.01% in Videocon, as per BSE shareholding data.
The said warrants can be converted into equity shares within 18 months from the date of allotment, the filing added.
The board of the company has sought shareholders approval vide postal ballot, it said.
Shares of Videocon Industries surged 10.63% in the intra-day trade to a high of Rs103. It was later trading at Rs101.70, up 9.24% on the BSE.