Mumbai, Mar 12: The board of Reliance Petroleum Ltd (RPL) is meeting on Saturday to consider providing a conversion option for those triple option convertible debentures (TOCDs) which no longer have detachable warrants accompanying them. The board will also fix a record date for exercising the outstanding warrants which would cease to be tradeable from April 10 this year. The Rs 2,172 crore offer made in August 1993 had three options. Each instrument was issued at Rs 60 of which two equity shares worth Rs 20 were allotted to the investors at par.The remaining Rs 40 comprised a TOCD of the face value of Rs 40 and was accompanied by two detachable warrants, each of which could be converted into two equity shares at Rs 20 per share.
Two of the three options for the investor were either to sell the warrants and keep the TOCD and obtain the ensuing interest on them after three years, or surrender the warrants to the company and get two shares of it by paying Rs 20 per share. The third option was to surrender the TOCD as well as the two warrants and obtain two shares without paying any amount.
However, as both the TOCD and the warrants were tradeable about 10 per cent of the investors still have the TOCDs.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
