Hospitality company Kamat Hotels (India) Ltd. on Friday announced that its board of directors approved the conversion and allotment of 10,68,805 equity shares pursuant to the exercise of warrants to raise Rs 7.77 crore.

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Shares of the company surged 5 percent to end at Rs 136.75 following the announcement.

The company stated that its Board of Directors on March 10, 2023, considered and approved the conversion and allotment of 10,68,805 warrants into 10,68,805 equity shares of Rs 10 each, upon conversion of an equal number of warrants issued to two promoter entities on a preferential basis.

The company has received a fund infusion of Rs 7.77 crore at the rate of Rs 72.75 per warrant.

Promoter Vithal V Kamat has been issued 5,89,602 shares for Rs 4.28 crore while another promoter entity Plaza Hotels Pvt. Ltd. has been issued 4,79,203 shares for a fund infusion of Rs 3.48 crore.

The paid-up capital of the company has increased to Rs 24.65 crore consisting of 2.46 crore equity shares of Rs 10 each following the allotment.

The Executive Committee of the board on February 23, 2023, approved allotment of 58,96,014 warrants at a price of Rs 97 each payable in cash, aggregating up to Rs 57,19,13,358 on a preferential basis to the promoter/promoter group of the company and certain identified non-promoter persons.

Non-promoter entities included Purple Clover Tree LLP, Alpha Alternatives Holdings Pvt. Ltd., and Alpha Alternatives Structured Credit Opportunities Fund.

(Edited by : Rukmani Krishna)