Andhra Cements to allot 1,54,10,000 shares on preferential basis

Andhra Cements Ltd has announced that the Board of Directors of the Company at its meeting held on July 26, 2007, has taken the following decisions:

A. To issue 1,54,10,000 Equity Shares by way of Preferential Issue on private placement basis to the following persons:

1. Infrastructure Development Finance Company Ltd: 87,40,000 No of shares to be allotted

2. Promoter Companies: 66,70,000 No of shares to be allotted

The pricing for the above shares will be as per SEBI (Disclosure & Investor Protection) Guidelines, 2000 governing the Preferential Issues.

B. To expand its existing production capacity from 1.40 million MT per annum to 3.50 million MT per annum, The cost of the project estimated to be Rs 400 crores (approximately) is proposed to be funded partly by way of loans from Financial Institutions and partly by way of internal accruals.

Further the Company has informed that, an Extra Ordinary General Meeting of the members of the Company, inter alia, for the purpose of a preferential Issue, as aforesaid, will be held on August 21, 2007.

Source : Equity Bulls

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