Rainbow Papers recommends 16% dividend, to issue warrants at Rs.105

Rainbow Papers Ltd has announced that the Board of Directors of the Company at its meeting held on August 26, 2006, inter alia, has considered and approved the following:

1. The Date of Annual General Meeting has been fixed as September 26, 2006 and its Agenda was also approved.

2. The proposal of increasing the authorized capital of the company from Rupees Seven Crores to Rupees Ten Crores subject to approval of Members of the Company at the Annual General Meeting.

3. Considered and approved Issuance of 20,00,000 Convertible Warrants (convertible in to 20,00,000 equity shares) at a price of Rs 105/- per Warrant aggregating to Rs 210 million as per the SEBI (Disclosure and Investor Protection) Guidelines, 2000, subject to approval of Members of the Company at the Annual General Meeting.

4. Approved the Notice of the Annual General Meeting including Special Resolution u/s 8l(IA) of the Companies Act, 1956 and provisions of the SEBI (Disclosure and Investor Protection) Guidelines, 2000 for the preferential allotment of Convertible Warrants (convertible in to equity shares).

5. Proposed dividend @ 16 % on the equity share of the Company for the year ended on March 31, 2006 subject to approval of Members of the Company at the Annual General Meeting.

6. Approved the Shareholding limit of Foreign institutional investors / NRI / OCBs up to 40% of paid up equity share of the Company, subject to approval of members of the Company at the Annual General Meeting.

Source : Equity Bulls

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