Temptation Foods approves rights issue, preferential issue

Temptation Foods Ltd has announced that the Board of Directors of the Company at its meeting held on January 29, 2010, inter alia, has proposed a Rights Issue of Equity Shares to fund the expansion programme of the Company and finalise the issue structure in consultation with the Merchant Banker/Advisors of the Company and subject to all statutory clearance and compliances and SEBI approval.

The Board also proposed to issue 75,00,000 (seventy Five lacs only) shares of face value of Rs. 10/- each at a premium of Rs. 30/- per share on preferential basis to Taib Securities Mauritius Ltd - 25,00,000 shares, HBS India Investment Mauritius Ltd - 25,00,000 shares and India Max Investment Fund Ltd - 25,00,000 shares and subject to shareholders approval and all statutory clearances and compliances and SEBI approval.

The Board also approved proposal to issue shares upto an aggregate amount equivalent to USD 200,000,000/- in INR or USD or in any other foreign currency by way of a QIP Issue or issue of American Depository Receipts or Global Depository Receipts and / or any other financial instruments convertible into equity shares (including warrants or otherwise) on such terms and conditions, to be decided in consultation with the merchant bankers or other advisors and subject to shareholders approval and all statutory clearances and compliances and SEBI approval.

An Extraordinary General Meeting of the Members of the Company will be held on March 05, 2010 to seek the approval for the rights Issue, preferential issue and the issue through QIP / ADR / GDR / or any other financial instrument and any other related matters as also amendment of the Articles of Association of the Company.

The stock closed the day at Rs.35.90, up by Rs.0.95 or 2.72%. The stock hit an intraday high of Rs.37 and low of Rs.35.55.

The total traded quantity was 498784 compared to 2 week average of 300690.

Source : Equity Bulls

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