GTN Industries to allot 60 lakh shares

GTN Industries Ltd has announced that the Board of Directors of the Company at its meeting held on November 26, 2009, inter alia, has approved subject to the approval of shareholders u/s 81(1A) of the Companies, 1956 at an EGM scheduled to be held on January 05, 2010, it is proposed to offer, issue and allot 48,00,000 Equity Shares of Rs. 10/- each on preferential basis to M/s. JEL Finance & Investments Ltd. and 12,00,000 Equity Shares of Rs. 10/- each on preferential basis to M/s. GTN Engineering (India) Ltd., part of promoter group, at a price of Rs. 12.50/- per share pursuant to stipulation as per Corporate Debt Restructuring (CDR) package approved by CDR EG, subject to approval of the Shareholders in accordance with the SEBI (Issue of Capital and Disclosure requirements), 2009 for Preferential Issues as in force and subject to other Regulatory approvals if any. The Board also considered and approved draft resolution u/s 81(1A) of the Companies Act, 1956, for making a Preferential Issue of Equity Shares as sated above at a price of Rs. 12.50/- each to M/s. JEL Finance & Investments Ltd. and M/s. GTN Engineering (India) Ltd.

The Board have also taken on record exemption application being made to Takeover Panel of SEBI by Proposed allottees to the preferential issue from the requirements of Regulation-11(2) of the SEBI Takeover Code.

The Preferential Issue price is calculated considering highest rate as on the relevant date being the date of approval of CDR Package i.e. June 25, 2009 on the basis of BSE and NSE quotations.

Further Board has fixed the EGM date on January 05, 2010 to consider and approve issue of equity Shares on preferential basis.

The stock closed the day at Rs.11, down by Rs.0.39 or 3.42%. The stock hit an intraday high of Rs.11.90 and low of Rs.11.

The total traded quantity was 4161 compared to 2 week average of 7837.

Source : Equity Bulls

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