Asian Granito India to raise Rs 90 cr via convertible warrants

New Delhi: Tiles maker Asian Granito India on Wednesday said it is planning to raise Rs 90 crore through issue of convertible warrants on a preferential basis.

The company will issue 50 lakh convertible warrants on a preferential basis to promoter group and non-promoters at Rs 180 per share, Asian Granito India Ltd (AGIL) said in a statement.

The company expects to raise Rs 90 crore and the proceeds will be utilised to fund expansion plans, reduce debt, meet working capital requirement and improve capital structure, it added.

AGIL further said it expects to receive the first instalment of 25 per cent of the issue proceeds – Rs 22.5 crore – by the end of April after approval in the EGM.

The 50 lakh warrants will be issued to promoters, including Kamlesh Patel, Mukesh Patel and Suresh Patel, and non-promoters in equal proportion.

“The warrant holders shall be entitled to convert the warrants into equal number of equity shares of face value of Rs 10 each on receipt of entire amount in one or more tranches, within a period of 18 months from the date of the allotment,” the company added.

The promoter group holds 32.73 per cent stake in the company, which is expected to increase to around 35 per cent after the conversion of warrants.

Institutions, including mutual funds and foreign portfolio investors, hold 8.16 per cent stake in the company.