Cholamandalam DBS Finance to issue shares to IFC at Rs 92

Cholamandalam DBS Finance Ltd has announced that the Board of Directors of the Company at its meeting held on April 03, 2010, have recommended proposal to raise funds for approval of shareholders.

The Board proposes an increase in the Authorised share capital of the Company from Rs. 400,00,00,000/-(Rupees four hundred crores only) to Rs. 420,00,00,000/- divided into 12,00,00,000 (twelve crores) equity shares of Rs. 10/- each and 300,00,000 (three crores) redeemable preference shares of Rs. 100/- each and consequential amendments to the Memorandum and Articles of Association of the Company.

The Board proposes an issue of 1,08,93,852 equity shares of Rs.10/- each at Rs. 92/- per share aggregating to Rs. 100.23 crs. to International Finance Corporation, World Bank Group, on a preferential basis in accordance with the SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009.

The approval of the shareholders of the Company for the above items is proposed to be sought through a postal ballot. The date of declaration of the postal ballot results is scheduled on May 04, 2010 which will be deemed to be the date of approval of the shareholders.

The stock was trading at Rs.98.60, up by Rs.7.35 or 8.05%. The stock hit an intraday high of Rs.103.50 and low of Rs.93.15.

The total traded quantity was 374727 compared to 2 week average of 238731.

Source : Equity Bulls

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