Techno Electric & Engineering to raise funds

Techno Electric & Engineering Company Ltd has announced that the Board of Directors of the Company at its meeting held on September 23, 2006, inter alia, have approved the following.

1. To raise additional funds up to an amount of Rs 688 Million and to issue and allot fourth time to time in one or more tranches, equity shares and/or any other securities convertible into equity shares at the option of the Company or the holders thereof and/or securities Linked to equity shares and/or securities with or without detachable warrants with right exercisable by the warrant holder to convert or subscribe to equity shares and/or any other instruments or securities issued by the Company ("Securities") to such foreign and/or Indian Institutional Investor / companies / individuals / promoter(s) / promoter group other persons or investors, whether or not they are members of the Company, subject to necessary provisions & approvals.

2. To issue and allotment from time to time in one or more tranches of

a. Upto 8,000,000 equity shares, at a price not exceeding Rs 70/- per equity share, and

b. Upto 16,00,000 warrants, exercisable in tranches and having a currency period of 18 months, each warrant providing the holder with the option to subscribe to one fully paid-up equity share of the Company for every warrant (aggregating to up to 16,00,000 equity shares (the Conversion Shares)) at a price of upto Rs 80/- per equity share, of which a sum of upto Rs 8/- per warrant would be payable at the time of allotment of the warrant (aggregating to upto Rs 128,00,000/- ) and an additional sum of upto Rs 72/- per warrant would be payable at the time of exercise of the warrant.

to Citigroup Venture Capital International Growth Partnership Mauritius Ltd, a company incorporated in Mauritius (hereinafter referred to as CVC), Gautam Nayak and Keshav Bhujale, in their capacity as Trustees of Growth Partnership Ajay Relan Co-Investment Trust; Growth Partnership P R Srinivasan Co-Investment Trust; Growth Partnership Vinayak Shenvi Co-Investment Trust, Growth Partnership J K Basu Co-Investment Trust; Growth Partnership Vivek Chhachhi Co-Investment Trust (together the investors) and promoter(s) / promoter group on a private placement basis through a preferential allotment in accordance with the terms of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, as amended in the following proportion:

a. Citigroup Venture Capital International Growth Partnership Mauritius Ltd upto 8,000,000 shares and upto 8,00,000 warrants.

b. Gautam Nayak and Keshav Bhujale, in their capacity as Trustees of the following trusts

- Growth Partnership Ajay Relan Co-Investment Trust;
- Growth Partnership P R Srinivasan Co-Investment Trust;
- Growth Partnership Vinayak Shenvi Co-Investment trust;
- Growth Partnership J K Basu Co-Investment Trust;
- Growth Partnership Vivek Chhachhi Co-Investment Trust
upto 800,000 shares and upto 80,000 warrants

c. Promoter(s) / promoter group upto 8,00,000 Warrants

but so that the total number of shares and warrants issued to the Investors, promoter(s) / promoter group in the aggregate do not exceed 8,000,000 equity shares and 16,00,000 warrants, subject to necessary provisions and approvals.

Further the Company has informed that an Extra Ordinary General Meeting of the Shareholders of the Company will be held on October 19, 2006, for the purpose of approving the issue and allotment of the aforesaid equity shares and warrants of the Company to the Investors.

Source : Equity Bulls

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