India's second largest realty firm Unitech said that its promoters have increased their stake in the company by 1.18% to 48.57% by converting warrants worth INR 224.7 crore.

In a notice to the Bombay Stock Exchange, Unitech said that its committee of directors at a meeting held on December 22nd 2010, has allotted 59,034,352 equity shares of INR 2 each at a premium of INR 48.75 per share to Harsil Projects Pvt Ltd, a promoter group company.

Mr Sanjay Chandra MD of Unitech told PTI that the promoters have paid INR 224.7 crore now, which is 75% of the total value of the warrants. He added that "We have paid 25% of the amount 18 months ago when the warrants were issued.”

The company said that the promoters' shareholding in the company after such allotment on conversion of warrants has increased to 48.57%t from 47.39%.

Last year in June, the company had issued 22.75 crore warrants convertible into equal number of equity shares at INR 50.75 per share. These warrants are convertible into equity shares at the aforesaid price within a period of 18 months, which is on or before December 28th 2010.

The filling added that "With this allotment, the allottee has exercised the conversion right with respect to all 227,500,000 warrants in total upon payment of balance 75% of the issue price within the period of 18 months and hence after this trench of conversion, the company has no warrants outstanding for conversion.”

(Sourced from ET)