Minda Corporation Limited, a leading automotive component manufacturer, announced today that its Board of Directors has approved the issuance of up to 76,50,000 warrants at a price of ₹550 per warrant to Minda Capital Private Limited, a promoter of the company.
The preferential allotment, which is subject to necessary regulatory and shareholders’ approvals, will raise approximately ₹420.75 crores for the company. The announcement was made in a filing to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) following the Board meeting held today.
According to the filing, each warrant will be convertible into one fully paid-up equity share of the company with a face value of ₹2. The warrant holders will have a period of 18 months from the date of allotment to exercise the option of conversion.
The preferential issue will increase Minda Capital Private Limited’s shareholding in the company from 16.14% (3,85,81,298 shares) to 18.74% (4,62,31,298 shares), assuming full conversion of all warrants.
The Board has also approved a Postal Ballot Notice for seeking shareholders’ approval for the preferential allotment. The company stated that it would make applications for in-principle approval with both stock exchanges on the date of dispatch of the Postal Ballot Notice.
Minda Corporation Limited, headquartered in Noida, is part of the Spark Minda Group and manufactures a wide range of automotive components. The company has established itself as a significant player in the Indian automotive component industry.