Max India approves issue of FCDs to Goldman Sachs

Max India Ltd has announced that the Board of Directors of the Company at its meeting held on December 26, 2009, has approved the issue of such number of Fully and Compulsorily Convertible Debentures ('FCDs') of the face value of Rs. 867/- each to Goldman Sachs Capital Partners through its wholly owned subsidiary Xenok Ltd., and/or their affiliates, (the "Investors") for an aggregate consideration of a rupee equivalent of approximately US $ 115 million, on preferential basis representing approximately 9.4% of the post issued equity share capital of the Company on the basis of the prevailing exchange rate of Rs. 46.77 per US $. The Investor has to compulsorily convert the FCDs on or before 15 (fifteen) months from the date of allotment of FCD. The FCDs will carry a coupon of 12% (Twelve percent) per annum. Each FCD will be compulsorily converted into four equity shares of Rs. 2/- each at a premium of Rs. 214.75/- per equity share.

The Board also approved issue of 20,00,000 warrants of the face value of Rs. 867/- each ("Warrants") to Mr. Analjit Singh, the Promoter of the Company for an aggregate consideration of Rs. 1734 million representing approximately 3% of the post issued equity share capital of the Company on conversion of Warrants. The Promoters shall deposit with the Company a sum of Rs. 433.50 per warrant offered to them (being an amount representing 50% of the consideration for the issue of shares arising upon conversion or the Warrants), which amount shall be adjusted against the issue price at the time of allotment of the equity shares. Each Warrant will be converted into four equity shares of Rs. 2/- each at a premium of Rs. 214.75/- per equity share at the option of Mr. Analjit Singh within a period of 18 (eighteen) months from the date of allotment of Warrants.

The Board of Directors decided to convene an Extra-ordinary general meeting of the Company on January 22, 2010 for obtaining the approval of the shareholders for the aforesaid issue of FCDs and Warrants with December 23, 2009 as the "Relevant Date" for determination of price of FCDs and Warrants pursuant to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended from time to time.

The Stock was trading at Rs.228.40, up by Rs.4.35 or 1.94%. The stock hit an intraday high of Rs.242 and low of Rs.227.65.

The total traded quantity was 186845 compared to 2 week average of 107709.

Source : Equity Bulls

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