JIK Industries to allot shares at Rs.13.80 on restructuring proposal

JIK Industries Ltd has announced that the Board of Directors of the Company at its meeting held on June 01, 2007, has considered the Hon'ble BIFR Orders and decided as under:

The Board has proposed to enhance its present authorised equity share capital from 5 Crores number of equity shares (face value Rs 10/- each) to 15 Crores number of equity shares subject to obtaining requisite permissions / approvals keeping in mind the Long Term requirements of Funds for the revival of the Company.

The Board has proposed to allot 20,00,000 equity shares of Rs 10/- each as fully paid up equity shares to SASF and 14,85,507 equity shares of Rs 10/- each as fully paid up equity shares to LIC @ a premium of Rs 3.80 per share (i.e. aggregate price Rs 13.80 per share) as a part of the settlement of their outstanding dues.

Further, the Company has proposed to issue / allot 4,65,000 number of equity shares of Rs 10/- each @ a premium of Rs 3.80 (i.e. aggregate price Rs 13.80 per share) to investors.

The Board has also proposed to issue 3227623 number of fully Convertible Bonds of Face Value of Rs 69/- per Bond, to be converted into 5 equity shares, on conversion in one or more trenches, within the period of 18 months from the date of allotment to investors.

In addition to above the Company has proposed to issue 41698100 equity shares as partly paid equity shares of face value of Rs 10/- each at par to Promoter, considering 10% as initial subscription towards aforesaid equity shares, after the completion of process of increasing the requisite authorised capital, as per Hon'ble BIFR Order.

Further, Hon'ble BIFR has also directed to re-issue 8,54,940 equity shares of Rs 10/- each @ a premium of Rs 13.60 per share to Promoter Mr. R G Parikh on the same terms and conditions against the share application money retained in the books of accounts of the Company as per CDR Package.

Source : Equity Bulls

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