Rana Sugars EGM to issue shares on preferential basis

Rana Sugars Ltd has announced that an Extra-Ordinary General Meeting (EGM) of the members of the Company will be held on December 04, 2006, inter alia, to transact the following:

1. Increase in the Authorised Share Capital of the Company from Rs 100,00,00,000 divided into 10,00,00,000 equity shares of Rs 10/- each to Rs 160,00,00,000 divided into 10,00,00,000 equity shares of Rs 10/- each and 6,00,00,000 Preference Shares of Rs 10/- each and consequential amendments in the Memorandum and Articles of Association of the company.

2. To allot and issue 22,00,000 Equity Shares of the Company of Rs 10/- each at a premium of Rs 21/- per share aggregating to Rs 6,82,00,000/- calculated in accordance with relevant guidelines issued by SEBI / Stock Exchanges to the following Directors / Promoters, subject to necessary provisions and approvals:

i. Rana Inder Pratap Singh - 11,00,000 (Proposed Allotment : no of shares)

ii. Rana Veer Pratap Singh - 11,00,000 (Proposed Allotment : no of shares)

3. Issuance of 5,50,00,000, 8% Non-Cumulative Redeemable Preference Shares of Rs 10/- each at par to the following persons:

i. Atique Al Aqadi Trading LLC - 1,40,00,000 no of shares

ii. Rikki Fze - 1,40,00,000 no of shares

iii. Citigate Trade F.Z.E. - 1,40,00,000 no of shares

iv. Rexflec Ltd Corporation - 1,30,00,000 no of shares;

upon the following terms and conditions and subject to the following rights, not withstanding anything contained in section 81(1-A) and other applicable provisions (if any) of the Companies Act, 1956:

1. The said Non-Cumulative Redeemable Preference Shares shall carry a fixed non-cumulative preferential dividend at the rate of 8% per annum on the capital for the time being paid-up thereon respectively and shall be redeemable after a period of 12 years from the date of allotment.

2. The said shares rank for dividend in priority to the equity shares for the time being of the Company.

3. The voting rights of the persons holding the said shares shall be in accordance with the provisions, of section 87 of the Companies Act, 1956.

4. The Company shall not create and or issue in future preference shares ranking in priority to the said shares and in the event of the Company creating and / or issuing preference shares in future ranking pari-passu with the said shares, it would do so only with the consent in writing of the holders of not less than three-fourths of the said shares then outstanding or with the sanction of the special resolution passed at a separate meeting of the holders of the said Shares then outstanding.

Source : Equity Bulls

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