Looking to boost confidence among investors, the core promoters of Pyramid Saimira Theatre Limited (PSTL) have proposed to raise their stake to little over 44% against the current 25.30% by subscribing to one crore new warrants to be issued by the company.
The company is also planning to raise close to Rs 500 crore from both domestic and international markets by undertaking qualified institutional placement (QIP) of one crore fresh shares with qualified institutional buyers (QIBs) through various options, including issuing GDRs, ADRs, FCCBs or other form of securities, said sources.
The company has placed a special enabling resolution in this regard to seek shareholders’ approval, added sources.
The Securities and Exchange Board of India (Sebi) had indicted the promoters in December 2008 for their alleged nexus with a stock broker and an earlier co-promoter Nirmal Kotecha for manipulating the stock price. They were prohibited from trading.
The board told the stock exchanges on Friday that it will fix the price for both QIPs, as well as warrants issued to the promoters.
It is learnt that co-promoters N Narayanan, currently chairman of PSTL, and Uma Swaminathan, a director of the company, are expected to subscribe 50,00,000 warrants each for a price to be fixed later.
After issue of fresh warrants, the promoter holding in the company is set to touch 44.09% against the current 25.30%.
While Narayan’s stake in the company will go up from 3.6% to 15.28%, Swaminathan’s share will touch 16.31% against 4.99% now, the sources pointed out.