Kemrock Industries to issue shares, warrants on preferential basis

Kemrock Industries & Exports Ltd has announced that the Board of Directors of the Company at its meeting held on October 02, 2007, inter alia, has approved the following:

1. Issue of Equity Shares on Preferential Basis:

To offer, issue and allot upto 25,98,000 Equity Shares at a minimum price as per SEBI (DIP) Guidelines, Chapter XIII, but not more than Rs 450/- per share, aggregate upto Rs 116.91 Crores (at a maximum price of Rs 450/- pet share) on preferential basis to Promoter / Director and eligible foreign entity named in the resolution.

2. Issue of Warrants on preferential Basis:

To offer, issue and allot upto 18,00,000 Warrants carrying two parts (8,22,000 Warrants in Part-A and 9,78,000 Warrants in Part-B), and each warrant of the said two parts shall carry a right, entitling the holder thereof to apply for and obtain one Equity Share of Rs 10/- each for cash at premium not exceeding Rs 440/- per Share i.e., at the price falling within the minimum price per share as per SEBI(DIP) Guidelines Chapter XIII but not more than Rs 450/- per share and aggregating upto Rs 81 Crores (at maximum price of Rs 450/- each) to select Promoter / Director named in the resolution.

Against Part A of the said Warrants, the registered owner of the Warrant shall be entitled to apply for at his option, and seek allotment of one equity share of Rs 10/- each, in the manner aforesaid, after March 31, 2008 but on or before March 31, 2009; whereas against Part B of the said Warrants, the registered owner of the Warrant shall be entitled to apply for at his option, and seek allotment of one equity share of Rs 10/- each, in the manner aforesaid, on and after April 01, 2009, but within the period of 18 months (being the term of the Warrant) from the date of issue of the Warrants.

The other terms and conditions of the Warrants shall be in compliance with SEBI (DIP) Guidelines 2000 (Chapter XIII) and the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, applicable.

3. Increase in Authorized Share Capital of the Company:

Increase in the Authorised Share Capital of the Company from Rs 15 Crores to Rs 25 Crores; and consequent alteration in the Articles of Association of the Company.

4. Notice convening Extraordinary General Meeting (EGM) of the Company on October 30, 2007.

The above decisions are subject to approval of shareholders of the Company to be obtained at the ensuing EGM of the Company. Further, the said decisions are also subject to the approval / consent / permission, if any, of other appropriate authorities like Stock Exchange(s), SEBI, Central Government etc.

Source : Equity Bulls

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