Arvind Remedies approves preferential issue to fund new project

Arvind Remedies Ltd is proposing to set up a new project at Irringatukotai for the total cost of Rs 250 Crores and for that purpose Rs 66 Crores of which Rs 16 Crores to be raised by Preference shares to the Promoter group and Rs 50 Crores by way of Equity shares on Preferential basis to Promoter group and other bodies corporate who have given their consent to contribute funds for the aforesaid project. Board of Directors considered and approved the aforesaid issue of Preference Shares subject to shareholders approval to be obtained through Postal Ballot Process.

Further it was also decided that the issue of equity shares to promoters of the Company on preferential allotment basis shall be subject to SEBI approval and accordingly the promoter group acquirers were advised to make an application to SEBI seeking exemption from the SEBI (Takeover) Regulations, 1997.

The Board also considered and approved subject to the approval of members, to increase the Authorized Share Capital to Rs 66,00,00,000/- (Rupees Sixty Six Crores only) divided into 50,00,00,000 (Fifty Crores) equity shares of Re 1 (Rupee One only) each, (total equity share capital Rs 50 Crores), and 16,00,000 (Sixteen Lacs) Cumulative Redeemable Preference Shares of Rs 100 each, (total preference share capital Rs 16 Cores).

The Board approved increase in the borrowings power to Rs 500 Crores subject to the consent of members pursuant to Section 293(1)(d), which is in excess of the paid up share capital and free reserves of the Company.

The Board approved resignation of Dr. Yogesh Kothad, Additional Director. The Board discussed and considering the reason explained it was decided to accept the resignation.

The Board noted that considering the major decisions, it was decided to seek extension of one month for holding the 21st Annual General Meeting of the Company by October 31, 2009 and accordingly necessary permission has been obtained from office of Registrar of Companies Tamil Nadu.

The stock was trading at Rs.2.15, down by Rs.0.04 or 1.83%. The stock hit an intraday high of Rs.2.50 and low of Rs.2.10.

The total traded quantity was 2089387 compared to 2 week average of 413734.

Source : Equity Bulls

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