Zen Technologies stock up 7%; board okays CCD conversion, issue of shares to Mukul Agrawal, others

Shares of Zen Technologies jumped 7 per cent in Tuesday's trade as the board approval to convert compulsorily convertible debentures (CCDs) into equity shares, is seen strengthening the company's balance sheet. 

The board approved the allotment of 40,64,627 Zen Technologies shares to holders of CCDs belonging to 'public category' including seasoned investor Mukul Mahavir Agrawal (11,26,765 shares) and Massachusetts Institute of Technology (1,63,660 shares(. The company board also approved the allotment of 4,69,633 shares to two promoters Ashok Atluri (2,34,883 shares) and Kishore Dutt Atluri (2,34,750 shares) on conversion of convertible warrants.  

The stock rose 7.23 per cent to hit a high of Rs 354.90 on BSE.

Zen Technologies offers defence training Solutions, Drones and Anti- Drones solutions. It builds training systems for imparting defence training and measuring combat readiness of security forces.

Chairman and Managing Director Ashok Atluri said: “Over the past year, we have diligently utilised the capital received to fuel our ambitious growth plans, invest in research and development, strengthen our presence in the export markets, and capitalize on emerging opportunities within the domestic market."

He said: "We are delighted to have renowned names on our shareholding, including Massachusetts Institute of Technology, University of Notre Dame DU LAC, GP Emerging Markets Strategies LP, The Ram Fund LP, Pragma Fund SPC - Equities Segregated Portfolio, Mukul Mahavir Agrawal, Jateen V Tanna, Emerge Capital Opportunities Scheme, and Chanakya Corporate Services Private Limited. It is a privilege to have such esteemed entities share our vision of creating long-term value, and we sincerely appreciate their confidence in Zen Technologies," he said.

Atluri said the conversion of equity shares further strengthens his company's balance sheet as it looks forward to pursuing growth objectives.

The allotted equity shares will be credited to the respective allottees' demat accounts within the stipulated timeframe, in accordance with the applicable regulations, Zen Technologies said.

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