Paramount Cables shares hit upper circuit as board approves conversion of warrants into shares

Shares of Paramount Communications Ltd (Paramount Cables) hit upper circuit limit in the trading session on Thursday after the company informed investors about conversion of warrants into equity shares by investors. The company informed about the same through an exchange filing during the session.

"The share allotment committee of the board of directors of the company, in its meeting held on January 25, 2024, has allotted 17,00,000 equity shares of face value Rs 2 to the warrant holders belonging to non-promoters on exercise of warrants which was issued to them at the price of Rs 21.57 per warrant," said the exchange filing.

Paramount Communications has allotted 12,00,000 equity shares to Tinu Kakaria and 5,00,000 equity shares to SCJ Colours. "The warrant holders have exercised the right to convert the warrants into an equivalent number of equity shares of the company," it said in the exchange filing.

Following the update, shares of Paramount Communications rose 5 per cent, locked in the buyer's circuit limit for the day, to Rs 110.07 on Thursday, commanding a total market capitalization of close to Rs 3,100 crore. The scrip had settled at Rs 104.83 in the previous trading session.

Shares of Paramount Cables have surged about 300 per cent from its 52-week low at Rs 28, hit on March 20, 2023. The stock is up 20 per cent in the last month, while it has zoomed about 170 per cent in the last six-months period. The stock is up 180 per cent in the last one year.

The company board of directors is scheduled to meet on Saturday, February 3, 2024, to consider and approve, inter alia, the Un-audited standalone and consolidated financial results for the quarter ended on December 31, 2023, said the company in a separate exchange filing with the bourses.

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