KLG Systel to allot 10,70,000 warrants to promoters

KLG Systel Ltd has announced that the Board of Directors of the Company at its meeting held on December 05, 2006, had resolved to allot 10,70,000 warrants to the promoters of the Company on Preferential basis @ Rs 261/- per warrant convertible at the option of the warrant holder into equity shares of Rs 10/- each at a premium of Rs 251/- per share, which is arrived at in accordance with Chapter XIII of SEBI (DIP) guidelines on Preferential issues, subject to the approval of shareholders in its Extra Ordinary General Meeting to be held on January 05, 2007 in accordance with applicable provisions of Companies Act, 1956, SEBI Act, Rules, Regulations, Guidelines, as may be applicable in this regard.

The Board had further resolved to borrow, as and when required, in excess of the paid up capital and free reserves of the Company upto the maximum limit of Rs 150 Crores, keeping in view the future expansion of business by construction of adequate infrastructure, Research and Development centre, acquisition, diversification etc., subject to the approval of shareholders in its Extra Ordinary General Meeting to be held on January 05, 2007 in accordance with the provisions of section 293 (1) (d) of the Companies Act, 1956.

Source : Equity Bulls

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