Subros approves proposal to issue 52,47,150 shares worth Rs 209 crore

Auto component maker Subros Thursday said its board has approved a proposal to issue 52,47,150 shares worth Rs 209 crore to Japan's Denso Corporation on a preferential basis.

Post the preferential allotment, Denso's shareholding in Subros would go up to 20 percent.

The company's board, which met Thursday, has approved the preferential issue and fixed the issue price at Rs 400 per share, including a premium of Rs 398, Subros said in a regulatory filing.

"Post preferential issue, the shareholding of Denso (in Subros) will increase to 20 percent as against the present 13 percent," it added.

The company has convened an extraordinary general meeting on October 26 to seek approval of the shareholders for the preferential issue, Subros said.

Shares of Subros today ended 5.95 percent down at Rs 320.05 on the BSE.