This auto company approves conversion of 60 lakh warrants - Details

The board has also approved the raising of capital by Pritika Engineering Components Limited (PECL), a subsidiary of the company.

Pritika Auto Industries Limited specializes in the production of tractors and automotive components.

Pritika Auto Industries, which is engaged in the manufacturing of tractor and automobile components, has informed the exchanges that its board of directors has approved the conversion of 60 lakh warrants into equity shares of the face value of Rs 2 each. The issue price of these warrants is Rs 19.

"...conversion of 60,00,000 warrants into 60,00,000 equity shares of face value of Rs. 2/- each at an issue price of Rs. 19/- each (including a premium of Rs. 17/- each), to “Non-Promoters/Public Category”, on preferential basis, upon receipt of balance amount aggregating to Rs. 8,55,00,000 (Rupees Eight Crore Fifty Five Lacs only) at the rate of Rs. 14.25 (Rupees Fourteen and Twenty Five Paise only) per warrant (being 75% of the issue price per warrant) from the allottees," the company said in an exchange filing.

The board has also approved the raising of capital by Pritika Engineering Components Limited (PECL), a subsidiary of the company. The capital will be raised by the preferential issue of up to 32,00,000 equity shares of the face value of Rs 10 each and up to 6,00,000 convertible warrants.

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Earlier in December, the National Company Law Tribunal (NCLT) approved the scheme of arrangement between Pritika Industries Limited (PIL) and Pritika Auto Industries Limited (PAIL) for the demerger of its automotive, tractor and engineering component business.

The approval was granted on December 4 by the Chandigarh Bench of the National Company Law Tribunal. Upon the scheme coming into effect, the demerged company will be known as Pritika Industries Limited (PIL) and the resulting company will be Pritika Auto Industries Limited (PAIL).

According to the exchange filing, eligible shareholders of Pritika Auto Industries (PAIL) would be awarded 10 shares of Pritika Industries (demerged company) for every 63 shares of PAIL with a face value of Rs 2 each.

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