Garware Wall Board approves fund raising proposal

Garware Wall Ropes Ltd has announced that the Board of Directors of the Company at its meeting held on November 21, 2006, has approved the following proposals and decided to seek the approval of the shareholders at the Extra Ordinary General Meeting:

1. To issue / allot in the course of international offerings in one or more foreign markets, securities convertible into Equity Shares, including American Depository Receipt (ADR) / Global Depository Receipt (GDR) / Foreign Currency Convertible Bonds, at the option of the Company and / or holders of the securities and / or securities linked to Equity Shares, and / or any Instruments or securities representing Equity Shares, (Securities) to be subscribed in foreign currency(ies) to such investors (whether institutions and / or incorporated bodies and / or individuals or otherwise, and whether or not such investors are members of the Company) as the Board may, in its sole discretion deem appropriate, through prospectus and / or letter of offer or circular and / or as private placement basis for an amount not exceeding US Dollar 10 million.

2. To issue, from time to time, in one or more tranches, by way of preferential allotment upto 27,46,000 Convertible Warrants at a premium of Rs 56.50 per Warrant, which Warrants shall be convertible within a period of 18 months from the date of issue / allotment of the Warrants ("the Conversion Period") into 27,46,000 fully paid-up Equity Shares ("the Converted Share") at a price of Rs 66.50 per share ("the Conversion Price") comprising of a nominal value / face value of Rs 10/- per Converted Share and a premium of Rs 56.50 per share determined in accordance with the provisions of the SEBI DIP Guidelines to the various entities named by the Promoters. The conversion of warrants as above is to be exercised as per the following schedule:

7,50,000 (no of warrants)- Upto to March 2007 (date of conversion)

9,98,000 (no of warrants)- During the period April 01, 2007 to March 31, 2008 (date of conversion)

9,98,000 (no of warrants)- April 01, 2008 to May 30, 2008 (date of conversion)

3. To issue and allot from time to time, in one or more tranches, by way of preferential allotment of upto 9,98,000 Convertible Warrants ("the Warrants") at a premium of Rs 56.50 per Warrant, which Warrants shall be convertible within a period of 18 months from the date of issue / allotment of the Warrants (the Conversion period) into 9,98,000 fully paid-up Equity Shares (Converted Share/s) at a price of Rs 66.50 per share ("the Conversion Price") comprising of a nominal value / face value of Rs 10/- per Converted Share and a premium of Rs 56.50 per share determined in accordance with the provisions of the DIP Guidelines to "GWRL-Managerial Staff Welfare Trust" and on such other terms and conditions, as may be decided or deemed appropriate by the Board in its absolute discretion.

Further the Company has informed that, the Board decided to convene the Extraordinary General Meeting on December 16, 2006 to seek approval for the above proposals, in addition to the following:-

Reclassification of unissued 30,00,000 Redeemable Preference Shares of Rs 100/- each into 3,00,00,000 Equity Shares of Rs 10/- each.

Source : Equity Bulls

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