The board of Internet infrastructure and services company Nettlinx Limited has approved a preferential issue of warrants to raise ₹85 crore.
“The proceeds will be used to accelerate business growth and development of infrastructure,” the company has said.
The company will issue up to one crore warrants, each convertible into or exchangeable for one fully paid-up equity share of ₹10 at an issue price of ₹85 per share. The preferential allotment will be made to identified non-promoter investors.
“About 25 per cent of the warrant issue price will be paid upfront at the time of subscription and allotment. The remaining 75 per cent will be payable upon the exercise of warrants, which can be done in one or more tranches within 18 months from the date of allotment,” it said in a statement on Monday.
An Extraordinary General Meeting (EGM) will be held virtually on March 5 to seek shareholder approval for the issuance. The meeting will be held through video conferencing and other audio-visual means.