Kew Industries EGM to consider increase in capital, raise funds through preferential issue

Kew Industries Ltd has announced that an Extra Ordinary General Meeting (EGM) of the members of the Company will be held on November 09, 2006, inter alia, to transact the following:

1. Increased in the Authorized Share Capital of the Company from Rs 13,50,00,000 divided into 1,35,00,000 Equity Shares to Rs 30,00,00,000 divided into 3,00,00,000 Equity Shares of Rs 10/- each, by creation of additional 1,65,00,000 equity shares of Rs 10.00 each ranking pad passu with the rights and liabilities of the existing equity shares and consequential amendments in the Memorandum of Association of the Company.

2. To create, offer, issue and allot up to 70,00,000 convertible warrants to be converted into equal number of equity shares of Rs 10/- each within eighteen months from the date of allotment at a price of Rs 30/- per equity share (including share premium of Rs 20/- per share) Promoters, Employees and others, on preferential allotment basis, on such terms aid conditions and in such manner as the Board may think fit, without offering the same to any person, who at the date of offer are holders of equity shares of the Company whether or not the acquisition of warrants or voting rights upon conversion of warrants results in a change in control and such Equity Shares allotted to the investors upon conversion of warrants shall rank pan passu in all respects with the existing equity shares of the Company, subject to necessary provisions & approvals.

3. To borrow, from time to time, any sum or sums of money from one or more bank, financial institution, Central or State Government, body corporate, firms, persons whether by way of term loan, working capital facility, cash credit facility, inter corporate loan, bill discounting, issue of debenture or bonds or any other fund based or non-fund based facility, whether secured or unsecured, notwithstanding that the money to be borrowed together with the money already borrowed by the Company (apart from the temporary loans obtained from the Company's bankers in the ordinary course of business) will or may exceed the aggregate of the paid up share capital and free reserves (the reserves not set apart for any specific purpose) of the Company but so however that the total amount up to which the money may be borrowed by the Board of Directors and outstanding at anytime shall not exceed the sum of Rs 100.00 Crores exclusive of interest and other charges, subject to necessary provisions & approvals.

Source : Equity Bulls

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