Maral Overseas Limited has informed the Exchange regarding allotment of 10,00,000 9.25% Redeemable Non-Convertible Cumulative Preference Shares of Rs. 100/- each on private placement basis.
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Maral Overseas Limited has allotted 10,00,000 (10 lakh) Redeemable Non-Convertible Cumulative Preference Shares with a face value of Rs. 100 each, raising Rs. 10 crore in total. These shares carry a fixed cumulative dividend of 9.25% per year and were issued on a private placement basis to select investors. As these are preference shares, they do not carry voting rights and will be redeemed by the company at a later date as per the terms of issuance. The funds raised will likely be used for general corporate purposes or to strengthen the company's capital base.
This is a modest capital raise of Rs. 10 crore via a non-dilutive instrument since preference shares do not dilute equity shareholders' ownership. However, it adds a fixed dividend obligation of Rs. 92.5 lakh annually and a future redemption liability of Rs. 10 crore, slightly increasing the company's financial commitments.