Information technology data storage major Moser Baer India on Monday said it proposed to issue global depository receipts equivalent to 14.7 million underlying shares as well as warrants equivalent of 5.4 million shares to the affiliates of Warburg Pincus for raising over Rs 675 crore (Rs 6.75 billion).
"The cumulative value of the transaction, assuming all warrants are exercised, aggregates to Rs 675 crore," the company said in a statement in New Delhi.
The amount will be utilised to finance the ongoing capacity expansion for optical storage products.
The allotment is expected to be done at a price of Rs 336 per share/warrant reflecting a marginal one per cent premium to the closing price on January 16, on NSE. The proposal is subject to shareholders' approval.
"The proceeds from the GDR issue will be used to finance expansion and help the company improve the marketshare to 18-20 per cent in the fast-growing DVD-R market," P M Pai, president, Moser Baer, said.
"The investment will enable us to rapidly scale up the DVD manufacturing plant. The contribution of DVD formats should rise sharply to over 30 per cent of revenues by 2005," Pai added.
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