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Hindustan Motors soars after preferential allotment-news13032012

Monday, March 12, 2012

Hindustan Motors' shares gained over 8%, touching the monthly high of Rs11.90, after the company said its board allotted equity shares and convertible warrants on a preferential basis to promoters

Hindustan Motors said that the special committee of the board of directors, at its meeting held today, March 12, 2012, allotted 1.18 crore equity shares of Rs5 each at a premium of Rs 7.25 per equity share and 1.18 crore warrants to the promoter/promoter Group companies.

The company said that each warrant is convertible into one equity share of Rs 5 each fully paid up at a premium of Rs 7.25 per equity share, at any time within a period of 18 months from the date of allotment of warrants.

Hindustan Motors reported net loss of Rs 42.81 crore in Q3 December 2011, compared with net profit of Rs 15.80 crore in Q3 December 2010. Net sales declined 35.1% to Rs 98.58 crore in Q3 December 2011 over Q3 December 2010.
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