Spentex to issue shares to Citigroup Ventures
By Our Corporate Bureau | 21 Jul 2006
New Delhi: Textile firm Spentex Industries will issue 17.5 lakh equity shares to Citigroup Venture Capital at a price of Rs 36.54 each upon conversion of warrants held by the venture capital firm in Spentex.
The warrants were allotted to Citigroup Venture Capital on December 8, 2005, with an option to convert into equity shares before the expiry of 18 months from its date of allotment at a price of Rs 36.54 a warrant, it said.
The company had received 10 per cent consideration at the time of allotment, it said. With this conversion, the equity capital of Spentex Industries would go up from Rs 57.45 crore to Rs 59.2 crore. Spentex Industries is one of the largest yarn manufacturers in the country with a total capacity of 3.5 lakh spindles for natural and man-made yarns.
It recently took over Indo Rama Textiles Ltd and Amit Spinning Industries Ltd.