Megasoft to issue warrants to promoter

Megasoft Ltd has announced that the Board of Directors of the Company at its meeting held on April 26, 2007, has approved the draft of the "Postal Ballot" notice for approval of the shareholders containing the following:

1. The Company proposes to issue a maximum of 2,250,000 warrants to M/s. S Ravindra Babu (HUF) (one of the Promoters) convertible within 18 months into one equity share of Rs 10 each at a price to be calculated in accordance with the SEBI(DIP) Guidelines, 2000 (Chapter XIII - Guidelines for Preferential Issues) based on the relevant date on private placement / preferential basis.

2. The Company proposes to formulate a new "Employees Stock Option Scheme - 2007" for issued of stock options not exceeding 2,700,000 options to senior managerial personnel and director of the company and its subsidiaries in accordance with the SEBI (ESOS & ESPS) Guidelines, 1999. In this regard it also proposes to issue a maximum of 2,250,000 options to Mr. G V Kumar, Managing Director.

The stock was trading at Rs.126.40, up by Rs.0.50 or 0.40%. The stock hit an intraday high of Rs.129.85 and low of Rs.125. The total traded quantity was 8811 compared to 2 week average of 13639.

Source : Equity Bulls

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