Rain Calcining to expand with new green field plant at Visakhapatnam

Rain Calcining Ltd has announced that the Board of Directors of the Company at its meeting held on March 20, 2007, inter alia, has reviewed the reports on share exchange ratio submitted by two Independent professional valuers Ernst & Young and Grant Thornton and approved the following:

1. Share exchange ratio of 2:7 i.e. Two Equity Shares of Rain Commodities Ltd will be allotted for every Seven Equity Shares held by the Shareholders in the Company as on the Record date that will be fixed consequent to the approval of the Scheme by the Hon'ble High Court of Andhra Pradesh.

2. Scheme of arrangement for (a) Amalgamation of the Company with Rain Commodities Ltd with effect from April 01, 2007 (appointed date); and (b) Transfer of Calcined Petroleum Coke (CPC) and Power Business from Rain Commodities Ltd to Rain Industries Ltd with effect from April 01, 2007 (appointed date).

The above decisions are subject to approval by the Shareholders of respective Companies, Lenders of respective Companies, Hon'ble High Court of Andhra Pradesh, Stock Exchanges and other Regulatory Authorities.

The Board of Directors has approved expansion of Calcining Capacity by 4,80,000 MT per annum by way of a Green field expansion at Visakhapatnam at a projected cost of Rs 334 Crores. This expansion shall include a cogeneration facility to generate 49 MW of Electricity. The proposed plant is expected to commence its operations in October, 2008.

Source : Equity Bulls

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