Hinduja TMT Board declares Special (Interim) Dividend of 200%, to demerge IT & ITES business

Hinduja TMT Ltd has announced that the Board of Directors of the Company at its meeting held on August 31, 2006, has declared a Special (Interim) Dividend of 200% (i.e. Rs 20/- per share of face value of Rs 10/-).

Further the Board has also approved a Scheme of Arrangement and Restructuring (Scheme) pursuant to which the Company´s IT& ITES undertaking would be transferred as a going concern by way of demerger to a separate Company viz., HTMT Technologies Ltd (HTMT Tech).

The Board approved the share entitlement ratio in relation to the demerger i.e., a member of the Company would receive 1 equity share in HTMT Tech of face value Rs 10/- for every 2 equity shares of face value Rs 10/- each held by such member in the Company. Thereafter, the Company´s share capital would be reduced by reduction of the face value of the equity shares from Rs 10/- to Rs 5/- per share and simultaneous consolidation of 2 such equity shares of Rs 5/- each into 1 equity share of Rs 10/-each.

As a consequence of the above actions, a member holding 2 equity shares of Rs 10/- each in the Company would receive 1 equity share of Rs 10/- in HTMT Tech and 1 equity share of Rs 10/- in the Company.

The Board also approved the plans for merger of the Company´s Media and Broadband subsidiaries, viz., Indusind Media and Communications Ltd (IMCL). InNetwork Entertainment Ltd and In2Cable India Ltd into a single consolidated Media entity viz., IMCL.

The Scheme is subject to requisite approvals including those of Stock Exchanges, shareholders, creditors, any regulatory authorities and sanction by the High Court of Judicature of Mumbai, and would take effect from October 01, 2006.

Source : Equity Bulls

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