Eicher Motors to allot shares on merger

Eicher Motors Ltd has now announced with reference to the earlier announcements regarding sanction of the Composite Scheme of Arrangement (hereinafter referred to as 'Scheme') for demerger of the investment business of Eicher Goodearth Investments Ltd. (EGIL) into Eicher Goodearth Pvt. Ltd. (EGPL) and merger of residual EGIL with Eicher Motor Ltd. by the Hon'ble High Court of Delhi at New Delhi, that pursuant to the aforesaid Scheme, the Company has to issue and allot 1,40,32,764 fully paid-up equity shares of Rs. 10/- each to the member of residual Eicher Goodearth Investment Ltd. (EGIL) in the proportion in which they hold equity shares in Residual EGIL. For this purpose, the Share Allotment Committee in their meeting held on November 30, 2009 fixed the Record Date as December 09, 2009 for the purpose of issuance of equity shares to the shareholders of Residual EGIL.

The Company reiterate that there would not be any financial impact on the Company pursuant to this Scheme.

The Eicher Motors stock closed the day at Rs.625, up by Rs.30.30 or 5.10%. The stock hit an intraday high of Rs.664 and low of Rs.582.50.

The total traded quantity was 173100 compared to 2 week average of 19392.

Source : Equity Bulls

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