The PCD issue will raise Rs 118 crore, while the exercise of warrants could bring in another about Rs 90 crore. The rights offer is being made at the rate of one PCD (with warrant) for every 10 shares held.
There is no preferential allotment of such PCDs planned along with the rights issue, a company release said.
The terms of the Rs 900 (face value) three-part PCD provide for conversion of Part A into one share at a price of Rs 400, on allotment; redemption of non-convertible portion of Rs 500 (Part B) with a yield to maturity of 5.5%, after 5 years; and a warrant (Part C) entitling the holder to acquire one equity share in the third, fourth or fifth year at a price to be fixed between Rs 650-700 per share.
Meanwhile, the company has reported an improved performance in the third quarter of 2004-05. The retailing revenues were up by 68% to Rs 69.8 crore for the December 2004, ended quarter (over the corresponding quarter of 2003). Profits before tax and exceptionals, however, were down a tad to Rs 62.3 crore from Rs 62.5 crore in the previous years quarter.
The company has cited planned expenditure on the Star India Bazaar Hyper market, that were charged to the income statement, as being responsible for the decline.
The depreciation charge has almost doubled to Rs 1.4 crore in the quarter from Rs 74 lakh in the previous corresponding quarter.
Profits before depreciation were higher at Rs 7.6 crore for the quarter versus Rs 7 crore for the December 2003, ended quarter.