Everest Kanto Cylinder approves preferential issue to Reliance Mutual Fund

Everest Kanto Cylinder Ltd has announced that the Board of Directors of the Company at its meeting held on May 19, 2010, inter alia, has approved the preferential issue of 40,00,000 Equity Shares to Reliance Capital Asset Management Ltd A/c Reliance Growth Fund and 20,00,000 Equity Shares to Reliance Capital Asset Management Ltd A/c Reliance Regular Savings Fund - Equity Option at a price of Rs. 135/- per share aggregating to a total investment value of Rs. 81 crores which would be subject to a lock - in of 1 year in accordance with SEBI Guidelines for Preferential Allotment and subject to the fulfillment of such terms and conditions as maybe mutually agreed.

The Board also approved preferential issue of equity shares aggregating to not more than 5,12,281 equity shares at a price of Rs. 135 per share to the existing private equity investors of the Company if they choose to exercise their anti dilution rights.

The Board proposed convening Extraordinary General Meeting of the members of the Company to approve the preferential issue of equity shares.

The stock closed the day at Rs.141, up by Rs.1.60 or 1.15%. The stock hit an intraday high of Rs.145 and low of Rs.137.50.

The total traded quantity was 818416 compared to 2 week average of 887206.

Source : Equity Bulls

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