Austral Coke approves fund raising proposal of US$ 200 million

Austral Coke & Projects Ltd has announced that the Board of Directors of the Company at its meeting held on May 28, 2009, inter alia, has decided to seek an enabling approval from the Members in the ensuing Extraordinary General Meeting of the Company, for raising of additional long term resources to part finance the Company's Capex and / or for other General Corporate purposes including reducing the leverage, depending on market dynamics.

The company has proposal to issue Equity Shares and / or Securities convertible into Equity Shares to Qualified Institutional Buyers (QIB) in one or more tranches through a Qualified Institutional Placement (QIP), not exceeding US$ 200 Million (United States Dollar Two Hundred Million only) or its Indian Rupee Equivalent in the aggregate; and / or issue of Foreign Currency Convertible (FCCBs)/ Global Depository Receipts (GDRs) / American Depository Receipts (ADRs) / Warrants and / or otherwise, instrument convertible into Equity shares, optionally or otherwise, in one or more tranches, not exceeding US$ 200 Million (United States Dollar Two Hundred Million only) in the aggregated, in the International Capital Market.

The Total amount to be raised vide both of the above proposed issue would not in the aggregate exceed a sum of US$ 200 Million (United States Dollar Two Hundred Million only) or its Indian Rupee Equivalent inclusive of such premium as may be determined by the Board.

To convene the Extra-ordinary General Meeting of members of the Company to obtain their necessary approvals to the above proposals.

The stock closed the day at Rs.290.70, down by Rs.2.55 or 0.87%. The stock hit an intraday high of Rs.299.95 and low of Rs.285.

The total traded quantity was 5450 compared to 2 week average of 42519.

Source : Equity Bulls

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