Globus Spirits gets Rs 70cr from Templeton Fund, shares up

North-based liquor manufacturing company Globus Spirits gained 16 percent in early trade on Wednesday after getting Rs 70.5 crore from Templeton Strategic Emerging Markets Fund and Rs 10.7 crore from the promoter.

The board of directors of the company, yesterday, approved allotment of 50,38,168, 4.75 percent cumulative compulsorily convertible preference shares (CCCPS) at a par value of Rs 140 per CCCPS to Templeton Strategic Emerging Markets Fund IV, L D C.

These preference shares will be convertible into one equity share of the face value of Rs 10 each against each CCCPS within a period of 18 months from the date of allotment.

The board also made allotment of 7,63,359 warrants at a price of Rs 140 per warrant to promoter group entity Chandbagh Investments Limited, which holds 49.43 percent stake in the company as of December 2012.

The promoter group entity will get one equity share of the face value of Rs 10 each in allotment against each such warrant within a period of 18 months from the date of allotment.

Promoters stake post sale will stand at 56 percent as against 67.09 percent as of December 2012. The company will use Rs 70 crore for business expansion.

At 09:57 hours IST, shares surged 13 percent to Rs 118.25 amid large volumes on Bombay Stock Exchange.

Trading volumes increased 36.5 percent to 3,54,903 equity shares as against five-day average of 9,745 shares

In the previous trading session, the share shot up 6.19 percent to Rs 104.70. Market capitalisation of the company currently stands at Rs 271.95 crore.