Amrit Banaspati Board to announce record date for scheme of arrangement

A meeting of the Board of Directors of Amrit Banaspati Company Ltd will be held on June 08, 2007, for taking on record the orders passed by the Hon'ble High Courts of Allahabad, Delhi & Chandigarh sanctioning the Scheme of Arrangement (The Scheme) between the Company and ABC Paper Ltd (ABC Paper) and Amrit Enterprises Ltd (AEL). The Board Meeting, among other things, will also consider fixation of Record Date for the purpose of allotment of shares by the Transferee Companies and reorganization of the share capital by the Company under the Scheme.

The Scheme provides for allotment of shares to shareholders of the company as below:

1. In consideration of the demerger and vesting of the Paper Undertaking in ABC Paper Ltd. (ABC Paper), ABC Paper shall without any further application or deed, issue and allot to the equity shareholders of the Company as on the Record Date, two (2) Equity Shares of the face value of Rs 10/- each credited as fully paid-up for every four (4) Equity Shares of the face value of Rs 10/- each of the Company.

2. In consideration of the demerger and vesting of the Edible Oils Undertaking in Amrit Enterprises Ltd. (AEL), AEL shall without any further application or deed, issue and allot to the equity shareholders of the Company as on the Record Date, one (1) Equity Shares of the face value of Rs 10/- each credited as fully paid-up for every four (4) Equity Shares of the face value of Rs 10/- each of the Company.

3. Upon vesting in and transfer of the Paper Undertaking and Edible Oils Undertaking to ABC Paper and AEL respectively, the Company shall, for every four (4) fully paid-up Equity Shares of Rs 10/- each held by the equity shareholders on the Record Date, without any further application or deed, reduce and cancel two (2) fully paid-up Equity Shares of the face value of Rs 10/- each against the allotment and issuance of Equity Shares by ABC Paper and one (1) fully paid-up Equity Share of the face value of Rs 10/- each against the allotment and issuance of Equity Shares by AEL under the Scheme.

For determining the entitlement of shareholders for allotment and cancellation of shares under the Scheme as above, the Board Meeting scheduled to be held on June 08, 2007 will fix the Record Date.

The stock closed the day at Rs.61.10, down by Rs.2.40 or 3.78%. The stock hit an intraday high of Rs.64.50 and low of Rs.61.10. The total traded quantity was 3260 compared to 2 week average of 2128.

Source : Equity Bulls

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