Radha Madhav to issue warrants, FCCBs

Radha Madhav Corporation Ltd has announced that the Board of Directors of the Company at its meeting held on December 28, 2006, inter alia, have considered the following:

1. Taken into account the performance of Unit I, II, III & IV. It is confident of achieving the sales projections given to banks / FII's.

2. Taken into account the internal report prepared by engineers on the development of manufacturing of coating machine and of construction of factory building at Pantnagar - Uttaranchal and it is confident that project will go upstream on the schedule dates.

3. Reapproved FCCB issue of USD 10 Million and in extension to this the board has also approved QIP not exceeding USD 5 Million.

The money raised will be utilized for setting up new project at a cost of Rs 8650 lacs for R & D and manufacturing of high-end Pharma packaging materials confirming to cGMP and HACCP standards. Production capacity will be exceeding 16000 MT per annum for PVdC coating, 1000 MT for collapsible tubes and Tenter-frame to produce 4000 MT of bilaterally oriented PVC shrink film.

4. The Board is satisfied with SAP implementation in the Company.

5. Approved issue of 40 Lacs warrants out of which 18 Lacs warrants will be allotted to promoters 6 Lacs warrants to each promoter at a price of Rs 41.00 per warrant. Details of proposed allottee is as mentioned below:

a. Mr Anil Agarwal : 6,00,000 No of Warrants
b. Mr Mitesh Agrawal : 6,00,000 No of Warrants
c. Mr Abhishek Agrawal : 6,00,000 No of Warrants
d. Eastman Equities Partners Pvt Ltd : 5,00,000 No of Warrants
e. CM Securities Pvt Ltd : 7,00,000 No of Warrants
f. Mittal Capital Finvest Pvt Ltd : 10,00,000 No of Warrants

Source : Equity Bulls

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