DCM Shriram says shareholders approve warrant issue to promoters

Mumbai: DCM Shriram Industries Ltd, in the process of fending off a hostile takeover bid from HB Stockholdings, said on Friday that its shareholders have approved the allotment of warrants to promoters on a preferential basis.

The shareholders of the company have approved the warrants issue through a postal ballot with requisite majority, DCM Shriram informed the Bombay Stock Exchange.

The sugar manufacturer has proposed a preferential allotment of warrants to the promoter and the promoters group at a price of Rs90 each.

The announcement comes even as the Harish Bhasin-led HB Stockholdings is awaiting a verdict from the Delhi High Court on a stay order against the conduct of a postal ballot by DCM Shriram seeking approval from its shareholders for the preferential allotment.

HB Stockholdings has made an open offer for acquiring 22.5 per cent stake in DCM Shriram. It had earlier filed a petition with the Company Law Board for restraining the sugar manufacturer from conducting a postal ballot, but the board declined to stay the proceedings.

DCM Shriram had initially proposed to issue preferential warrants to promoters at Rs52 per share, which it raised to Rs90 per share after HB Stockholdings made a hostile bid.

This in turn forced HB Stockholdings to increase its acquisition price to Rs90 a share, up from Rs70 announced earlier.