Jindal Cotex Limited (NSEI:JINDCOT) announced that it will issue 14,400,000 warrants at a price of INR 2.5 per warrant for gross proceeds of INR 36,000,000 on January 30, 2016. The transaction will include participation from new investors Manu Jindal and V. S. Yarns Pvt. Ltd. Manu Jindal will hold 7.41% stake and V. S. Yarns Pvt.

Ltd. will hold 16.83% stake in the company on close of the transaction. The boards of directors have approved the transaction. The company will receive 25% of the exercise price as upfront payment at the time of issuance.

The warrants will be convertible into equity shares and will be issued on a preferential basis to promoters and promoters group and persons others then promoters. The transaction is subject to the approval of the shareholders at extraordinary general meeting on March 1, 2016.