Rajshree Sugars & Chemicals to allot 11 lakh shares to MD

Rajshree Sugars & Chemicals Ltd has announced that at the meeting of the Board of Directors held on April 28, 2009, the Directors had approved to allot 11,00,000 equity shares / warrants at Rs. 62/- per share (Rs. 10/- per share with a premium of Rs. 52/- per share) to Ms. Rajshree Pathy, Chairperson and Managing Director on a preferential basis and it was subsequently approved at the Extraordinary General Meeting held on May 28, 2009.

The said allottee had remitted 25% of the value amounting to Rs. 1,70,50,000/- and balance 75% should be payable within 18 months from the date of allotment i.e. on or before December 10, 2010. Based on the above, the Company has issued 11 share warrants of 1,00,000 each to the allottee on June 11, 2009. Now, the allottee has paid the balance 75% in full.

Subsequently, at the meeting of the Board of Directors held on December 09, 2010, the Board has allotted 11,00,000 equity shares to Ms. Rajshree Pathy, Chairperson and Managing Director. The said shares would be locked-in for 3 years from the date of allotment and also the 20% of the increased capital of 47,58,340 shares (20% of 2,37,91,700 equity shares) would be locked in for 3 years.

The stock closed the day at Rs.70.70, up by Rs.3.35 or 4.97%. The stock hit an intraday high of Rs.70.70 and low of Rs.67.10.

The total traded quantity was 8557 compared to 2 week average of 14219.

Source : Equity Bulls

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