Bemco Hydraulics Ltd to convert loans to equity shares

The Board Meeting of Bemco Hydraulics Ltd held on January 15, 2014, has considered the Preferential Issue of Equity Shares.

The Chairman informed the Board that the Bankers of the Company have time and again stressed for infusion of permanent capital in the form of Equity in the Company so as to maintain an optimum debt equity ratio, as against loans infused by the promoters of the Company.

To achieve the desired purpose it is decided to offer for subscription by the way of preferential allotment 340,000 Nos. Equity Shares of Rs. 10/- each for cash at a price not lower than Rs. 60/- per Equity Share of Rs. 10/- each to Promoters, Companies of the Promoters Group and Independent Investors, for an aggregate value not lower than Rs. 2,04,00,000/- (Rupees Two Crores Four lakhs only) subject to passing of special resolution under section 81 (1A) of the Companies Act 1956.
The Chairman placed before the Board a copy of the Draft Notice convening the EOGM on February 14, 2014 which has been approved by the board.

Shares of Bemco Hydraulics Ltd was last trading in BSE at Rs.54.90, up by Rs.2.60 or 4.97%. The stock hit an intraday high of Rs.54.90 and intraday low of Rs.52.30.

The total traded quantity was 160 shares as compared to 2 week average of 90 shares.

Source : Equity Bulls

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