Ess Dee Aluminium to issue shares at Rs.575 on preferential basis

Ess Dee Aluminium Ltd has announced that the Board of Directors of the Company at its meeting held on August 08, 2007, inter alia, has decided to issue 14,10,000 equity shares of face value of Rs 10/- each at a price of Rs 575/- per share on preferential allotment basis to Morgan Stanley, subject to the approval of the members of the Company in General Meeting by way of special resolution as required to be passed under the provisions of the Companies Act, 1956, as well as such other provisions of SEBI (Disclosure and Investor Protection) Guidelines and such other approvals, consent, sanction etc. as may be required for this purpose.

The packaging opportunities in the pharmaceutical, Food and FMCG sectors are immense and the Company with its inherent strengths, unique vertically integrated business model and end to end solutions providing capability is well poised to reap the benefits. Such funds as may be raised through this preferential allotment will facilitate its pursuit of expanding its horizons through both organic and inorganic routes thus enabling the Company to expeditiously capitalize on the growth opportunities.

An Extra Ordinary General Meeting of the shareholders of the Company will be convened on September 03, 2007, for this purpose.

The stock closed the day at Rs.539.20, down by Rs.9.15 or 1.67%. The total traded quantity was 79613 compared to 2 week average of 26603. The stock hit an intraday high of Rs.566 and low of Rs.535.

Source : Equity Bulls

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