Lakshmi Energy and Foods Ltd. (BSE:519570) announced a private placement of 11,000,000 prepaid warrants at a price of INR 4.375 per warrant for gross proceeds of INR 48,125,000 on January 11, 2016. The warrants will be issued to the promoters' group on preferential basis. Each warrant will entitle the holder to purchase one common share of the company at an exercise price of INR 2 per share.

The issue price of warrants is INR 17.5 per warrant and the company will receive 25% of the issue price of the warrants as upfront payment and the balance will be received at the time of exercise of warrants. The transaction was approved by the board of directors of the company. The transaction is subject to shareholders' approval at the extraordinary general meeting to be held on February 10, 2016 and regulatory approval.