The company's board has approved the issue of warrants worth Rs 81.90 crore to three individuals. They are Rakesh Jhunjhunwala, Rekha Jhunjhunwala and Utpal Sheth.
According to the notice the company will be using the proceeds for furthering opportunities in defence segment along with general corporate purposes.
The move by the board still needs to pass the approval of members. This will allow the company to issue 1,05,00,000 convertible warrants at a price of Rs 78. Each warrant is convertible into one fully paid-up equity share of Rs 10/- each of the company, at any time within 18 months from the date of allotment of warrants.
Rakesh Jhunjhunwal, often touted as the Warren Buffett of India, and his wife Rekha Jhunjhunwal, have been alloted 50,00,000 warrants each, meanwhile Utpal Sheth will pick up 5,00,000 convertible warrants.
The company board has also approved the issue of 1 crore warrants, worth Rs 78 crore, to its promoter Grevek Investments and Finance.