Mahalaxmi Rubtech Board recommends Bonus Issue & proposes Rights Issue

Mahalaxmi Rubtech Ltd has announced that the Board of Directors of the Company at its meeting held on November 23, 2006, has transacted the following:

1. The Board has recommended an issue of Bonus Shares on the Company's equity shares in the ratio of 1:4 i.e., one additional equity share for every four equity shares held by the shareholders of the Company as on a Record Date to be fixed by the Board later for this purpose subject to the approval of the shareholders at the Extra Ordinary General Meeting of the Company and necessary approvals and provisions.

2. With a view to augment the financial resources for the Company’s ongoing expansion plan in the Rubber and Textile weaving divisions of the Company, the Board has considered and proposed to raise the fund by way of Rights Issue of Equity shares, to the extent of Rs 30 Crores, subject to consent and approval of the shareholders at the Extra ordinary General Meeting of the Company.

3. The Board has considered and proposed to increase the Borrowing limit up to Rs 50 Crores subject to consent and approval of the shareholders at the Extra ordinary General Meeting of the Company.

4. The Board has decided to convene the Extra ordinary General meeting of the share holders of the Company to be held on January 04, 2007 inter alia to consider and to approve the issue of Bonus shares, Rights issue, and increase in borrowing limit.

Source : Equity Bulls

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