Bombay Rayon to raise funds through preferential issue

Bombay Rayon Fashions Ltd has announced that the Board of Directors of the Company at its meeting held on November 07, 2006, inter alia, has considered / approved the following:

1. Increase in the Authorised Capital of the Company from Rs 50 crores to Rs 70 crores by creation of 2,00,00,000 equity shares of Rs 10/- each.

2. Issue of Equity Shares and / or one or more kind of securities convertible into Equity Shares to Qualified Institutional Buyers in accordance with SEBI Guidelines for Qualified Institutions Placement (QIP) for an aggregate sum not exceeding Rs 300 crores (inclusive of such premium as may be determined). Further, securities to the extent not issued or placed with Qualified Institutional Buyers out of the aforesaid aggregate limit may be issued through FCCBs, GDRs, ADRs etc.

3. Issue of 61,00,000 warrants convertible into equity shares to promoters in accordance with SEBI guidelines on preferential allotment basis.

4. Increase the limit of borrowings under section 293(1)(d) to the extent of Rs 600 crores.

5. Expansion of Fabric manufacturing capacity from 50 million mtrs p.a. to 120 million mtrs p.a and Garment manufacturing capacity from 64,000 units per day to 1,50,000 units per day with an estimated capital outlay of Rs 350 crores.

6. To convene the Extra-Ordinary General Meeting of the Company to consider and approve the above proposals.

Source : Equity Bulls

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