Oudh Sugar Mills to forfeit 253125 shares

Oudh Sugar Mills Ltd has announced that the Company had offered 39,98,240 Equity shares of Rs 10/- each at a premium of Rs 50/- per Share on rights basis to the existing Equity Shareholders of the Company in terms of Letter of Offer dated July 31, 2008.

As per the terms of Offer, a sum of Rs 30/- (including a sum of Rs 25/- as and by way of premium) per share was payable on application and the balance sum of Rs 30/- (including a sum of Rs 25/- as and by way of premium) per share was payable as First and Final Call Money on or before January 15, 2009 for which as notice for payment was sent on December 22, 2008 to all the shareholders.

On February 05, 2009 a further notice was sent to the defaulting shareholders for payment of the aforesaid First and Final call Money along with interest due thereon by February 28, 2009, in spite of the said two notices 570 shareholders holding 2,53,125 shares failed to pay the First and Final call money aggregating to a sum of Rs 75,93,750.

Accordingly, in terms of the provisions of the Articles of Association of the Company and terms of Letter of Offer above referred to the Board of Directors of the Company at its Meeting held on March 30, 2009 has approved forfeiture of the aforesaid 2,53,125 Equity shares on which First and Final Call Money aggregating to Rs 75,93,750 has not been paid together with the equal amount paid at the time of application on these shares.

At the same time, the Board has also decided to waive off the entitlement of the aforesaid interest as also refund of interest to all shareholders who had paid the interest in terms of the Notice dispatched on February 05, 2009 above referred to.

The stock was trading at Rs.32.85, down by Rs.0.90 or 2.67%. The stock hit an intraday high of Rs.34.30 and low of Rs.32.10.

The total traded quantity was 1966 compared to 2 week average of 5391.

Source : Equity Bulls

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