Visaka Industries to issue shares on preferential basis

Visaka Industries Ltd has announced that an Extra-Ordinary General Meeting (EGM) of the members of the Company will be held on October 30, 2006, inter alia, to transact the following:

1. To create, offer, issue and allot equity shares / fully convertible debentures / any securities other than warrants (with permissible Green Shoe Option, if any) of the face value of Rs 10 each, of an aggregate number not exceeding 40,00,000 equity shares of Rs 10 each out of the authorized share capital of the company to Qualified Institutional Buyers in the manner and on the terms and conditions as the Board may in its absolute discretion decide and the shares be, issued at a price which is not less than the price in accordance with the Guidelines for Qualified Institutions Placement contained in Chapter XIIIA of the SEBI (Disclosure and Investor Protection) Guidelines 2000, subject to necessary provisions and approvals.

2. To mortgaging and or charging by the Board of Directors of the Company of all the movable and immovable properties of the Company where so ever situated, present and future, and the whole of the undertaking of the Company, together with power to take over the Management of the Business and Concern of the Company in certain events, to or in favour of UTl Bank Ltd to secure its Rupee Term Loan amounting to Rs 40.00 crores, together with interest thereon at the respective agreed rates, compound interest, additional interest, liquidated damages, premia on prepayment, costs, charges, expenses and other moneys payable by the Company to UTI Bank Ltd under its respective heads, of agreement / loan agreement / letters of sanction / memorandum of terms and conditions entered into by the Company in respect of said Term Loan.

3. Amendment in the Resolution pertaining to Preferential Issue of Equity Shares / Equity Share Warrants to M/s Sandadi Homes Pvt Ltd passed by the members in the 24th Annual General Meeting held on May 25, 2006 as follows:

1. Existing clause:

"Resolved Further that (a) the Equity Shares to be issue and allotted & (b) the Equity Shares to be issued and allotted as a consequence of exercise of the option under the Warrants, shall rank pari passu with the existing Equity Shares of the Company, in all respects."

Be amended as follows:

"Resolved Further that (a) the Equity Shares to be issued and allotted and (b) the Equity Shares to be issued and allotted as a consequence of exercise of the option under the Warrants, shall rank pari passu with the existing Equity Shares at the Company, in all respects including dividend."

"Resolved Further that the Post-Issue Shareholding of M/s Sandadi Homes (Pvt) Ltd, pursuant to the issue of 3,00,000 Equity Shares and 9,00,000 Equity Share Warrants on preferential issue basis, shall be 12,39,950 shares i.e. 10.44% of the Paid-up Equity Share Capital of the Company."

Source : Equity Bulls

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