New Delhi: Hindustan Motors today said it plans to raise Rs 14.45 crore through the issue of
preferential shares to four different promoter group firms.
"The proposed preferential issue of up to 1,18,00,000 equity shares of Rs 5 each fully paid-up together with up to 1,18,00,000 warrants be fixed at Rs 12.25 each," Hindustan
Motors said in a filing to the BSE.
The issue price, which was fixed at a meeting of the special committee of directors on Saturday, is at a premium of Rs 7.25 to the face value of the shares, it added.
The company decided that the equity shares and the warrants will be issued to four promoter group firms – Amer Investments (Delhi) Ltd, Bengal Rubber Company Ltd, Central
India Industries Ltd and Hindusthan Discounting Company Ltd.
"The aforesaid preferential issue of equity shares and warrants is subject to approval of the shareholders," the filing said.
The special committee of directors has also decided to convene an extraordinary general meeting on March 7, 2012, to seek approval of the company's shareholders for the preferential issue of the equity shares and warrants, it added.