Ramkrishna Forgings approves issue of 10 lakh shares

Ramkrishna Forgings Ltd has announced that the Board of Directors of the Company at its meeting held on January 22, 2010, inter alia, has approved the Issue upto 10,00,000 equity shares of face value of Rs. 10/- at a price of Rs. 107.50 per share (i.e. a premium of Rs. 97.50 per share) and issue upto 10,00,000 warrants with an option to subscribe upto 10,00,000 Equity Shares of Rs. 10 each at a price of Rs. 107.50 per share to Investor who are not Promoters on preferential issue basis.

The Board approved the Issue upto 1,00,000 equity shares of face value of Rs. 10/- at a price of Rs. 107.50 per share (i.e. a premium of Rs. 97.50 per share) and issue upto 29,00,000 warrants with an option to subscribe upto 29,00,000 Equity Shares of Rs. 10 each at a price of Rs. 107.50 per share to M/s. Eastern Credit Capital Ltd, belonging to the Promoter group on a preferential issue basis.

The Board also approved the increase of Authorized Capital of the Company from Rs. 18 crore to Rs. 21 crore and approved the convening an Extra Ordinary General Meeting of the shareholders of the company on February 17, 2010 for this purpose.

The above Preferential Issue and increase in authorized capital are subject to the approval of the members of the company in General Meeting and other statutory authorities, if necessary.

The Stock closed the day at Rs.129.20, up by Rs.6.15 or 5%. The stock hit an intraday high of Rs.129.20 and low of Rs.122.

The total traded quantity was 23890 compared to 2 week average of 6488.

Source : Equity Bulls

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