Pritika Auto approves conversion of 12.98 lakh warrants

Pritika Auto Industries, which is engaged in the manufacturing of tractor and automobile components, has informed the exchanges that its board of directors has approved the conversion of 12,98,000 warrants into the same number of equity shares with a face value of Rs 2 each. 

"The Board considered and approved the allotment of equity shares on conversion of 12,98,000 warrants into 12,98,000 equity shares of the face value of Rs. 2/- each at an issue price of Rs. 18/- each (including a premium of Rs. 17/- each), to “Non-Promoters/Public Category”, on preferential basis," the company said in an exchange filing. 

Meanwhile, the company has declared the financial results for the quarter and year ended March 31, 2024. The company reported Rs 8,254 lakh in revenue from operation in the fourth quarter of FY2024 as compared to Rs 7,055.23 lakh in the third quarter of financial year 2024.

Earlier in December, the National Company Law Tribunal (NCLT) approved the scheme of arrangement between Pritika Industries Limited (PIL) and Pritika Auto Industries Limited (PAIL) for the demerger of its automotive, tractor and engineering component business. 

The approval was granted on December 4 by the Chandigarh Bench of the National Company Law Tribunal. Upon the scheme coming into effect, the demerged company will be known as Pritika Industries Limited (PIL) and the resulting company will be Pritika Auto Industries Limited (PAIL).

According to the exchange filing, eligible shareholders of Pritika Auto Industries (PAIL) would be awarded 10 shares of Pritika Industries (demerged company) for every 63 shares of PAIL with a face value of Rs 2 each.