2.35 million LB shares up for grabs

Warrant holders of LB Finance Ltd. have been offered the opportunity to convert their warrants into shares. Thus 2.35 million shares will enter the market, the company said. All warrant holders as at August 15 will be eligible in partaking in this offer.

"Each warrant of the 2.35 million, issued three years ago, can be converted into one new ordinary share in the capital of the company. Converting these warrants into shares is a right given to our warrant holders as they will have the opportunity to grow within LB Finance," said Managing Director Sumith Adhihetti.

The Board of Directors of the company had recommended a bonus issue after the completion of the warrant conversion. Thereby each shareholder will be given two shares for every five shares held. Upon launching their five-year debenture the Company witnessed an over subscription on the opening day itself. LB Finance warrants were traded in the stock market and thus given value.

LB warrant holders are entitled to subscribe for a new ordinary share of the par value of Rs. 10 in exchange for every warrant on payment of the prescribed price for an ordinary share. The prescribed price of an ordinary share (equivalent to 75% of the weighted market price - Rs. 77/53) is valued at Rs. 58.15.

The 1,233 existing warrant holders each can purchase the allotted number of shares for him/her and could also purchase extra ones from the 2.35 million that are in the market.

The company performance over the past few years has been conspicuously said to be one of the most striking come-back stories in the contemporary era. Profits as well as deposits pertaining to the company have meticulously sustained an upward momentum and Adhihetty said that the company's continuing confidence among investors was evident from the number of depositors showing significant gains as well as the number of deposits.

The company is expected to post what would be its best performance ever by the end of the current financial year.