Spentex issues 17.50 lac equity shares to Citigroup Venture Capital
19 Jul '06
2 min read
The board of directors of Spentex Industries has approved the conversion of 17.50 lakh warrants held by Citigroup Venture Capital International Growth Partnership Mauritius Ltd, into equal number of equity shares. The conversion price for one warrant into one equity share is Rs 36.54.
Commenting upon the development, Mr Mukund Choudhary, MD, Spentex Industries said, “The development reflects confidence of CVC in us, who have decided to convert the warrants held by them into equity within a period of 7 months as against a window of 18 months available to them.”
These warrant were allotted to CVC on 08.12.2005 with an option to convert into equity shares, before the expiry of 18 months from its date of allotment at a price of Rs.36.54 per warrant. The Company had received 10 percent consideration at the time of allotment of the said warrants.
With this conversion, the equity capital of Spentex Industries would go up from Rs 57.45 crore to Rs 59.20 crore.
Spentex Industries Limited is the third largest yarn manufacturer in the country with a total capacity of 3.50 lakh spindles for natural and man made yarns. It recently took over Indo Rama Textiles Ltd and Amit Spinning Industries Ltd.
Spentex employs technologically advanced machinery and has online monitoring and control equipment, supplied by reputed machinery suppliers, to produce high quality yarn consistently. Spentex is in the process of launching specialty yarns in the category of slub yarns, core spun yarns and supima spun cotton yarns.