Butterfly Gandhimathi Appliances to issue shares at Rs.408

The Board of Directors (the "Board") of Butterfly Gandhimathi Appliances Limited (the "Company") has, in its meeting dated 14th March, 2012, approved the issue and allotment, on a preferential allotment basis, of an aggregate of 24,51,000 (twenty four lakhs fifty one thousand) equity shares of Rs.10 (Rupees Ten) each to Reliance Alternative Investments Fund - Private Equity Scheme-I (acting through its Trustee Reliance Alternative Investments Services Private Limited) (the "'Investor" and the preferential issue, the "Preferential Issue") The Board approved the Preferential Issue of equity shares to the Investor at a premium of Rs.398 (Rupees Three hundred and ninety eight) aggregating to an issue price of Rs.408 (Rupees Four hundred and eight) per equity share (determined in accordance with applicable laws and guidelines) for an aggregate issue price of Rs. 100,00,08,000 (Rupees One hundred Crores and eight thousand), subject to execution of definitive documentation and obtaining all relevant statutory and other approvals. The Preferential Issue would constitute 13.709% of the total post issue paid up equity share capital of the Company computed on a fully diluted basis.

The Board has also granted its approval for the execution of necessary investment documentation and other consequential actions relating to the Preferential Issue and intends to seek the approval of the shareholders of the Company for the Preferential Issue.

The Promoters of the Company (the "Promoters") have stated that their objectives in approving the Preferential Issue are: (i) to meet the funding requirements of the Company; and (ii) to ensure compliance with the order of the Board for Industrial and Financial Reconstruction (the "BIFR") dated 17 August 2011 in case number 279/98 (with respect to the Modified Sanctioned Rehabilitation cum Merger Scheme concerning the merger of Gangadharam Appliances Limited with the Company).

Under the aforesaid order of the BIFR. the BIFR permitted the Company to issue and allot equity shares to the Promoters in terms of the merger of Gangadharam Applianees Limited with the Company despite their aggregate shareholding in the Company pursuant to such issue of shares exceeding the minimum public shareholding requirements prescribed under applicable laws, subject to the Promoters divesting their shareholding to comply with the minimum public shareholding requirements over a period of 3 (three) years from the date of allotment of shares pursuant to the aforesaid merger.

The Butterfly Gandhimathi Appliances Ltd. stock was trading at Rs.409, up by Rs.14.25 or 3.61%. The stock hit an intraday high of Rs.418 and low of Rs.383.15.

The total traded quantity was 53169 compared to 2 week average of 9566.

Source : Equity Bulls

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