KEI Industries to split from Rs.10 to Rs.2, to invest Rs.200 Crores on expansion

KEI Industries Ltd has announced that the Board of Directors of the Company at its meeting held on September 12, 2006, inter alia, has decided the following, subject to requisite approvals:

1. To sub-divide the equity shares of face value of Rs 10 into five equity shares of Rs 2/- each.

2. Proposed expansion plan at Uttaranchal / Chaupanki (Rajasthan) with approx. cost of Rs 200 Crores and authorization to purchase land at Uttaranchal.

3. Issue of further shares u/s 81 (1A) of the Companies Act, 1956, up to USD 60 million, by way of Public Issue or Preferential Allotment or international offering by issue of Convertible securities / Global Depository Receipts (GDRs) / American Depository Receipts (ADRs) / Foreign Currency Convertible Bonds (FCCBs) and / or by way of private placement, whether in Indian currency or foreign currency, subject to necessary provisions & approvals.

4. Creation, offer, issue & allotment of securities under Employees Stock Option Scheme 2006 and constitution of Remuneration / Compensation Committee for framing the detailed terms and conditions.

5. Authorization to the Board of Directors to create charges / mortgages and hypothecation etc. u/s 293(1)(a) of the Companies Act, 1956.

6. To raise funds through Qualified Institutional Placement (QIP) up to Rs 200 Crores.

7. Approved issue of Non-convertible Debentures and / or Commercial Paper of Rs 30 Crores.

8. To pass the resolution requiting consent of members through Extra-ordinary General Meeting (EGM).

Source : Equity Bulls

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