Lakshmi Overseas Board approves set up of subsidiary, split shares into Rs.2

Lakshmi Overseas Industries Ltd has announced that the Board of Directors of the Company at its meeting held on October 20, 2006, inter alia, made the following decisions:

1. To incorporate the wholly owned subsidiary of the Company in the name of Punjab Greenfield Resources Ltd which will undertake procurement of food grains, paddy, rice, wheat, corn, cereals, fruits, vegetables, other related food products, agricultural produce etc. in line with the activities undertaken by the agencies run by the Punjab Government and the Central Government. The proposed Company shall also undertake R&D activities in the farm sector and distribute seeds and fertilizers to farmers and for the farms under the proposed contract farming activities of the Company.

2. To split the shares of Rs 10/- each into shares of Rs 2/- each subject to approval of shareholders of the Company.

3. To issue convertible warrants up to 5% of post issue capital to the promoters group convertible into equity shares within a period of 18 months from the date of issue of such convertible warrants at the price determined as per SEBI guidelines subject to approval of shareholders of the Company and other statutory approvals, if any.

4. To raise fresh capital by issuance of up to 2.5 million shares within 1 year of EGM by way of ADR / GDR / QIP or any other mode under the relevant guidelines, to utilize the funds for general corporate purposes / 2nd Phase of the Company's expansion plans / husk based Electric Power Plant / investment in the wholly owned subsidiary etc. subject to necessary statutory approvals, if any and approval of shareholders of the Company.

5. To convene the Extra Ordinary General Meeting of the Company on December 01, 2006 to take approval of the members to the aforesaid matters.

Source : Equity Bulls

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