JMT Auto to allot warrants and preferential issue of shares

JMT Auto Ltd has announced that the Board of Directors of the Company at its meeting held on September 21, 2006, inter alia, has transacted the following:

1. Approved the Amendment Agreement dated September 18, 2006 entered into between the Company and Bach Ltd for preferential issue of shares.

2. To allot to M/s Bach Ltd, upto 7,00,000 fully paid up equity shares of the Company having a face value of Rs 10/- per equity share at a subscription price of Rs 108.15 per equity share including a premium of Rs 98.15/- per equity share and upto 1,20,000 convertible warrants, each convertible warrant convertible into or providing the holder the option to subscribe to one fully paid-up equity share of a face value of Rs 10/- per equity share (aggregating upto 1,20,000 equity shares at a price of Rs 108.15 per equity share, including a premium of Rs 98.15/- per equity share) which convertible warrants shall be convertible and/or exercisable in one or more tranches within a period of 18 months.

3. Upto 1,80,000 convertible warrants with an option to subscribe to one fully paid up equity share of Rs 10/ each (aggregating upto 1,80,000 equity shares) at a price of Rs 108.15 per equity share for cash, (including a premium of Rs 98.15/- per equity share) on a preferential basis be allotted to the promoters in the following proportion, being the promoter group of the Company:

a. RSD Finance Ltd : 1,40,000 convertible warrants

b. Rajeev Singh Dugal : 40,000 convertible warrants

and which convertible warrants shall be convertible and/or exercisable in one or more tranches within a period of 18 months, in accordance with SEBI (Disclosure & Investor Protection) guidelines, 2000 for preferential issues.

4. To deal with legal matters relating to land Registrations allotment and other matters in connection thereto.

5. Increase in the remuneration payable to the Directors for attending the meetings of the Board and Committees thereof in accordance with the provisions of section 310 and other applicable provisions of the Companies Act 1956.

Source : Equity Bulls

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