2.35 million LB shares on offer

Warrant holders of LB Finance Ltd. have been offered the opportunity to convert their warrants into shares under which 2.35 million shares will enter the market, the company said.

All warrant holders as at August 15 will be eligible in participating 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 in a statement.

He added that the Board of Directors of the company had recommended a bonus issue after the completion of the warrant conversion. Thereby each share holder will be given 2 shares for every 5 shares held.

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. Adhihetty said 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 said it is expected to post what would be its best performance ever by the end of the currant financial year.