The company has informed the Bombay Stock Exchange (BSE) that the issue of shares on preferential basis to FIs would be to the extent of 10 million equity shares of Rs 10 each, at a price which shall not be less than the price to be decided as per Sebi guidelines, towards part repayment of their loans or dues.

The board has also approved that the issue of warrants to promoters and/or their associates to the extent of 10 million warrants on preferential basis, would be at a price to be calculated as per Sebi guidelines. The warrant holders shall be entitled to apply for one equity share for every warrant held on or before the expiry of 18 months from the date of allotment.

The board has approved the issue of 10.5 per cent non convertible redeemable preference shares at par to the extent of Rs 150 crore on private placement basis to such persons or entities as it may decide. The issue of warrants and preference shares is mainly to finance part repayment of the loans or dues of the financial institutions. Residual loans are proposed to be converted into zero interest loan, repayable within nine to twelve years. The board has also approved the increase in authorised share capital. It has decided to convene a meeting of the members of the company on March 19 to seek members' approval on the aforesaid issues wherever required.