Gremach Infrastructure approves preferential issue to promoters

Gremach Infrastructure Equipments & Projects Ltd has announced that the Board of Directors of the Company at its adjourned meeting held on May 04, 2009, inter alia, has considered and approved the issue on Preferential basis to the Promoters and entity / entities of promoter group and other investors, up to 4,90,00,000 Warrants, at a price as determined in accordance with the 'Guidelines for Preferential Issues' contained in Chapter XIII of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, or Rs 31 whichever is higher, entitling the warrant holders to apply for equivalent number of fully paid equity shares of the Company subject to approval of the shareholders at the General Meeting of the Company and other necessary statutory approvals.

The Board has also approved convening of an Extraordinary General Meeting of the Shareholders of the Company to be held on June 01, 2009, inter alia for obtaining the approval on the Proposed Preferential Issue of Warrants to the promoter, entity / entities of promoter group and other investors. Each Warrant will be convertible in one equity share of Rs 10 each within a period of 18 months from the date of allotment.

To increase authorized share capital of the Company from Rs 32,30,00,000 divided in to 3,23,00,000 Equity Shares of Rs 10/- each to Rs 75,00,00,000 divided in to 7,50,00,000 Equity Shares of Rs 10/- each, by the creation of 4,27,00,000 equity shares of Rs 10/- each ranking pari passu with the existing equity shares.

The stock closed the day at Rs.29.65, up by Rs.1.40 or 4.96%. The stock hit an intraday high of Rs.29.65 and low of Rs.28.55.

The total traded quantity was 34530 compared to 2 week average of 39339.

Source : Equity Bulls

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