GL Hotels to issue 74,09,576 warrants at Rs.283.42

The Board of Directors of GL Hotels Ltd at its meeting held on May 11, 2007, has approved the following business:

1. The Board has constituted a Compensation Committee as required under SEBI guidelines for administration and superintendence of the Employee Stock Option Scheme (ESOS).

2. The Board has approved GL Hotels Employee Stock Option Scheme (ESOS) 2007 subject to approval of the Shareholders of the Company.

3. The Board has approved to issue 74,09,576 equity warrants and / or other securities convertible into or exchangeable with equity shares to non-promoters entities at Rs 283.42 (*including premium of Rs 273.42) per share of Rs 10/- each aggregating to Rs 210,00,22,030/- in accordance with Guidelines for Preferential Issues contained in Chapter XIII of the Securities and Exchange Board of India (Disclosure and Investors Protection) Guidelines, 2000 (Guidelines) entitling the security holders to apply for equivalent number of fully paid shares of the Company. This is subject to the approval of the shareholders of the Company on extra-ordinary general meeting to he convened on June 06, 2007.

The "relevant date" for determining the issue price of Rs 283.42 of equity warrants and / or other securities convertible into or exchangeable with equity shares which will he allotted against the same is fixed as May 07, 2007, being the date, which is 30 days prior to the last date of resolution of the members of the Company i.e. June 06, 2007. An amount equivalent to 10% of the issue price shall be payable on subscription to the equity warrants and / or other securities convertible into or exchangeable with equity share. Upon exercise of the right to apply for equity shares, the warrants holders will be liable to make the payment of the balance amount, being 90% of the issue price.

4. The Board has approved the revised remuneration to be payable Mr. Ravi Ghai, Chairman and Managing Director of the Company subject to approval of the shareholders of the Company.

5. The Board has appointed Mr. Gaurav Ghai as Joint Managing Director of the Company with effect from May 11, 2007 for a term of five years at the remuneration subject to approval of the shareholders of the Company.

6. The Board has convened an Extra-ordinary General meeting of the shareholders of the Company on June 06, 2007.

Source : Equity Bulls

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