New Delhi, Sept.1 (ANI/Business Wire India): The Board of Directors of Kajaria Ceramics Limited has approved a plan to issue preferential warrants to promoters/ promoter's group.
The company proposes to Issue 1,27,00,000/- convertible warrants at Rs. 30 per warrant (as per SEBI guidelines) to the promoters. One warrant would entitle a promoter to apply for and obtain allotment of one equity share having a face value of Rs. 2 each against one such warrant.
Out of 1,27,00,000 warrants, upto 57,00,000 warrants are convertible on or before 31.3.2008, and the balance 70,00,000 warrants are convertible after 31.3.2008, but before 18 months from the date of allotment.
The object of the proposed issue is to improve the debt/equity ratio for leveraging to borrow funds for general corporate purpose including the future capex/working capital requirements of the company.
Kajaria Ceramics is the largest manufacturer of ceramic wall and floor tiles in the country with a capacity of 26.4 million square meters per annum, and is the only ceramic tile company in the country conferred with "Super Brand" status.
The company has two plants, one each at Sikandrabad and Bhiwadi. Both plants are operating at 100 percent capacity.
The company has recently expanded its capacity by 8.4 million sq. mt. of ceramic tiles production to have a cumulative manufacturing capacity of 26.4 million sq. mt. per annum. (ANI)
