Archies as a brand to grow & expand

31 Mar '07

3 min read

The Board of Directors of Archies Limited, India's leading gifting and greeting company, have decided, subject to shareholders approval, to issue and allot equity shares and warrants to Bennett & Coleman company limited (BCCL) and Darashaw & Company Pvt Ltd respectively at its Board Meeting held in New Delhi.

Subject to shareholders approval at the EGM convened for April 19th, 2007, the company would allot and issue 250,000 equity shares of Rs 10/- each at a price of Rs 159.50 per share (including a premium of Rs 149.50 per share) to BCCL on preferential basis.

The company has also decided to issue and allot 400,000 convertible warrants to Darashaw and company Pvt. Ltd and 100,000 convertible warrants to other entities. The company has also decided to issue and allot 5,00,000 share warrants to promoter group.

All warrants will be issued at a price of Rs 159.50 (including a premium of Rs 149.50 per share on conversion). The allotment would happen after the shareholders approval at the EGM convened for April 19, 2007.

Archies limited would be raising approx. Rs 20 crores / Rs 200 million through this preferential offer. The funds raised would be utilized for the expansion plans of the company and to meet enhanced advertising costs.

Archies currently operates 83 company owned stores across India and plans to make it 230 stores by March 2010. These funds would further aid up the expansion and consolidation plans of the company, which is majorly diversifying into gifts and is the leader in the social expression industry.

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