Announced Wed, 22 Jul · 16:04 IST
NCLT allows reissuance of 6% preference shares to redeem old ones
Fund Raising View source PDF
ELECTHERM · price
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Price reaction · full curve 14 horizons · vs prior close
-1.6%1-day move
₹1027.10
prior close
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base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
————-1.6-1.2————————
Up moveDown movePending
AI summary
NCLT Ahmedabad allowed Electrotherm to issue and allot 1.095 crore 6% non-cumulative redeemable preference shares at Rs 10 each to 5 existing preference holders. This reissues about Rs 10.95 crore of new preference shares to replace old unredeemed ones on same terms (6% coupon, 2 to 20 year redemption). Non-consenting holder Ahmedabad Aviation will get its 10.5 lakh shares redeemed in cash at par. Not treated as a change in share capital.
Likely market impact
Neutral for equity holders. No dilution or change in share capital. Old preference shares get replaced on identical terms.