RSWM approves Preferential Issue of Warrants

The Board of Directors of RSWM Ltd at its meeting held on October 18, 2007, has approved Preferential Issue of 30,00,000 (Thirty Lacs) Warrants of Rs 87/- each aggregating to Rs 26.10 Crore (Rupees Twenty Six Crore Ten Lakh only) with option of conversion of each Warrant into One Equity Share of Rs 10/- each within a period of 18 months from the date of issue and allotment to Promoters, Directors and Persons acting in concert, which includes Associates, Relatives and Friends of such Promoters and Directors.

5,00,000 (Five Lac) Warrants of Rs 87/- each aggregating to Rs 4.35 Crore (Rupees Four Crore Thirty Five Lakh only) with option of conversion of each Warrant into One Equity Share of Rs 10/- each within a period of 18 months from the date of issue and allotment to Employees of the Company, Group Companies and Associates Companies.

subject to approval of the Shareholders in accordance with the SEBI (Disclosure and Investor Protection) Guidelines, 2000 for Preferential Issues as in force and subject to regulatory approvals if any. The Company has convened an Extraordinary General Meeting on November 17, 2007 for approval of the same by members.

The Board of Directors has also decided for disposal of the Garment Division of the Company situated at Bangalore to M/s. Bombay Rayon Fashions Ltd for a consideration of Rs 25.50 Crore. The requisite Shareholders approval will be taken in due course.

Source : Equity Bulls

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