Principal Pharmaceuticals & Chemicals to undergo capital reduction

A meeting of the Board of Directors of Principal Pharmaceuticals & Chemicals Ltd will be held on March 30, 2012, to consider, discuss, implement, execute and to give effect to the various provisions of the Rehabilitation Scheme as approved by the Hon'ble Board of Industrial and Financial Reconstruction and the directives received from the Monitoring Agency.

The Board will consider reduction of the existing issued, subscribed and paid up equity share capital of the Company by 60% from Rs. 600 lacs to Rs. 240 lacs by reducing the face and paid up value of existing equity share of Rs. 10/- each into ONE equity share of Rs. 4/- each without further consolidation.

The Board will consider alteration to the Memorandum and Articles of Association as per rehabilitation scheme and also the allotment of fresh 50 lacs Equity Shares of Rs. 4 each, aggregating to Rs. 200 lacs to the promoters and associates towards part Promoters' contribution as per the Rehabilitation plan of the Company, subject to such terms & conditions as has been approved by various authorities.

The Principal Pharmaceuticals & Chemicals Ltd stock was trading at Rs.2.98, down by Rs.0.05 or 1.65%. The stock hit an intraday high of Rs.3.03 and low of Rs.2.92.

The total traded quantity was 1004 compared to 2 week average of 2882.

Source : Equity Bulls

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