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Nandan Denim Ready To Inflict Convertible Warrants On FII Polus Global Fund

• By  Textile Excellence
• September 23, 2015

Nandan Denim Limited (NDL), India’s second and world’s fifth largest integrated denim fabric maker, is set to issue 25 lakh fully convertible warrants to UK-based foreign institutional investor, Polus Global Fund, for a total consideration of Rs 50 crore. The warrants will be converted into equity shares at Rs 200 per share within 18 months time. The conversion price of Rs. 200 per share is at over 70% premium to Friday, September 18 closing price of Rs. 115.50 per share on BSE and 250% premium to the book value of Rs 57 per share. Nandan Denim will seek the shareholders’ approval for this preferential allotment at its upcoming Annual General Meeting (AGM) on September 29, 2015. The UK-based FII currently holds 1.35 lakh shares or 0.30% stake currently in the company which will increase to 26.35 lakh shares or 5.48% post conversion of the warrants into equity shares. The warrant holder will have to pay an amount equivalent to at least 25% (Rs 12.5 crore) of the consideration on or before the allotment of warrants while balance 75% shall be payable on or before the time of exercise of the warrants (i.e. within 18 months).

Polus Global Fund is registered in the Republic of Mauritius and is managed by Fidelis Trust & Corporate Services Limited having category 1 global business licence. The Fund has made strategic investments in the following Indian entities till 31^st December 2014: Zee Learn Limited, Omaxe Limited, Archies Limited, ERA Infra. Engineering Ltd, Gujarat Apollo Industries Ltd, IDFC Limited, Mandhana Industries Limited, Radico Khaitan Limited, Siti Cable Network Limited, Tata Global Beverages Limited. Deepak Chiripal, CEO, Nandan Denim Ltd. informed, “The Company is following its well defined charter of growth and we are pleased with the performance so far. A disciplined approach in line with the long term strategy would enable us to further cement our position in the industry. Company will use the fresh funds for its expansion project. Having attained global scale, we now aim to internalise the ‘global way of doing business’. We wish to sustain our efforts on our quality and commitment level across the board.”

Textile Excellence