NEW DELHI: Shankara Building Products on Monday said a wholly-owned subsidiary of APL Apollo Tubes, APL Apollo Mart, has bought 10,00,000 equity shares of the company, accounting for 4.38 per cent of the total paid-up capital. The shares were bought from promoter Sukumar Srinivas at Rs 755 per share.
The company said its board will hold a meeting on Thursday to consider raising funds via preferential issue of share warrants. In this regard, the company has received a proposal from APL Apollo Mart for a subscription to the preferential issue of 14,00,000 share warrants convertible into equity shares, which is 5.77 per cent of fully diluted capital upon conversion.
“APL Apollo Mart has offered a price of Rs 750 per warrant, which is subject to the approval of the board shareholders and other regulatory authorities, as may be required,” the company said in BSE filing.
The price of the proposed issue of warrants will be determined by the board of directors in pursuant to Regulation 164 and 166A of SEBI (issue of Capital and Disclosure Requirements), Regulations, 2018, the company said.
Following the development, the stock climbed 9.86 per cent to hit a 52-week high of Rs 822.25.
APL Apollo Tubes, on the other hand, jumped 5.96 per cent to Rs 963.90. Sukumar Srinivas held a 55.05 per cent stake in the Shankara Building as of December 31. Overall, the promoter group held a 56.48 per cent stake in the company as of December 31.
The relevant date for the issue of warrants on a preferential basis in accordance with ICDR, if approved, would be Monday, March 21.
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