DIC India Board approves rights issue

The Board of Directors of DIC India Ltd at its meeting held on April 18, 2007, has approved the increase of Authorized Capital. The Board has approved the increase of Authorized Capital of the Company from the existing limit of Rs 70,000,000/- (divided into 7,000,000 equity shares of Rs 10/- each) to Rs 150,000,000/- (divided into 15,000,000 equity shares of Rs 10/- each).

The Capital Clause in the Memorandum of Association and the relevant clause in the Articles of Association will be altered accordingly, for which the consent of the shareholders will be taken in the forthcoming Annual General Meeting scheduled to be held on May 29, 2007.

The company is planning to issue shares on rights basis to existing shares holders subject to the approval of the members of the Company, the Board has approved issue and allot up to or as near thereto 22,95,179 equity shares of the Company as rights shares in the ratio of 1:3 (one rights share for every three shares held) within the price band of Rs 210 - Rs 230 per share (including premium of Rs 200-220 per share), to the shareholders whose names appear on the Register of Members or on the list of depositories as beneficial owners, as at the end of the business hours on record date as may hereafter be fixed by the Board for the rights issue.

The funds raised through the rights issue would be utilised by the Company for its ongoing projects, expansion plans and to augment its working capital requirement.

The stock closed the day at Rs.171.25, up by Rs.3.05 or 1.81%. The stock hit an intraday high of Rs.174.90 and low of Rs.166.30. The total traded quantity was 1948 compared to 2 week average of 2813.

Source : Equity Bulls

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