Ucal Fuel Systems approves preferential issue at Rs 36.35

Ucal Fuel Systems Ltd has announced that in continuation of the Board Meeting held on April 13, 2009, the Board of Directors of the Company at its meeting held on July 25, 2009, has considered and approved the convening of an Extraordinary General Meeting (EGM) of the shareholders on August 19, 2009 to seek the approval of the shareholders for the preferential issue and allotment of 82,17,625 equity shares of Rs 10/- each at a premium of Rs 26.35/- aggregating to Rs 29.87 crores to the Promoters / Persons acting in concert group identified at the Board meeting held on April 13, 2009.

The relevant date for calculating the price was also approved as July 20, 2009 (30 days prior to EGM) as per SEBI (DIP) Guidelines. The Board approved the issue of 82,17,625 equity shares at a price of Rs 36.35 which is Rs 1.06 higher than Rs 35.29, which was the issue price of the equity shares at the time of application to SEBI by the Acquirers. The acquirers were requested to inform SEBI of the changes in the issue price. The issue price is calculated as per SEBI (DIP) Guidelines, 2000.

The proposed issue of equity shares on preferential basis to the Promoter / Persons acting in concert group, is to meet the critical fund requirements of AMTEC, the 100% subsidiary of the Company. The Company needs to support the operations of AMTEC though the current recession (as explained in detail in the explanatory statement to the Notice convening the EGM). The Company approached the promoters/persons acting in concert group, who have agreed to infuse funds / convert unsecured loan into equity for this purpose.

The stock closed the day at Rs.44.50, up by Rs.0.85 or 1.95%. The stock hit an intraday high of Rs.44.70 and low of Rs.42.25.

The total traded quantity was 3619 compared to 2 week average of 6294.

Source : Equity Bulls

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