Sunil Hitech Engineers Ltd. (BSE:532711) announced a private placement of 7,950,000 warrants on January 4, 2013. The company will issue 3,000,000 warrants to promoters group and 4,950,000 warrants to foreign institutional investor's. Foreign institutional investor's can hold up to a limit of 49% stake after closing. The company has received approval from its board of directors. The deal is subject to the approval in extraordinary general meeting to be held on January 31, 2013.

On January 31, 2013, the company has received approval in its extraordinary general meeting for the deal. The company will issue specifies securities or warrants on preferential basis.

On February 14, 2013, the board of directors of the company approved the issuance of 1,550,000 warrants pursuant to the transaction. The warrants will be convertible into one common share of the company at INR 19 per share and will mature in eighteen months from the date of the allotment. The company will receive 25% of the total amount, which is INR 7,362,500 as upfront payment at the time of allotment of warrants and the remaining 75% will be paid within eighteen months. Sudarshan Shriram Chokhani and Renu Sudarshan Chokhani will subscribe for 600,000 and 950,000 warrants respectively.