December 04, 2008

Adhunik shareholders approve debentures to Clearwater Capital

Adhunik Metaliks announced that its shareholders in AGM held on November 27th 2007 has approved the resolution pertaining to the issue of unsecured fully convertible debentures of the face value of INR 122.64 each for cash at par aggregating to a maximum of INR 1,010 million to Clearwater Capital Partners.

In addition, shareholders approved the issue of warrants convertible into shares to the promoter group. As per the scheme, a maximum of 11,110,249 warrants convertible into equity shares of INR 10 each are proposed to be issued. Warrant holders shall have the option of subscribing to one share of INR 10 each per warrant at a price of INR 118 a share of face value of INR 10 each at any time within 18 months from the date of allotment of warrants.

Shareholders also approved the resolution for increase in the authorized share capital from INR 1 billion to INR 1.25 billion to allow issue of further securities from time to time to institutional investors for raising capital for the company’s future expansion and business growth and acquisition plans.

The shareholding pattern, post allotment to Clearwater & warrant to promoters will undergo a change with promoter holding coming down from 64% to 62.92%and the holding of institutional investors will go up from 16.24% to 20.78%.