Hindustan Motors Ltd approves issue of shares, NCDs to lenders

The Board of Directors of Hindustan Motors Ltd at its meeting held on August 05, 2014, has approved/taken note of fund raising proposal.

The Board approved issue of up to 2,38,87,300 Equity Shares of Rs. 5/- each at a price of Rs. 9.44 (including premium of Rs. 4.44) aggregating to Rs. 22,54,96,112/- and issue of up to 20,53,00,000 - 10.25% Secured Non-Convertible Debentures of Re. 1/- aggregating to Rs. 20,53,00,000/- on private placement basis to the lenders (Bank and Financial Institutions) towards part payment of recompense of interest amount as approved by Corporate Debt Restructuring Empowered Group at its meeting held on June 28, 2014.

The aforesaid issue of Equity Shares and Debentures are subject to approval of the Shareholders under the provisions of the Companies Act, 2013 and other approvals as may be required. The Equity Shares will be issued in terms of Chapter VII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and other applicable Rules / Regulations / Guidelines of Securities and Exchange Board of India and other regulatory authorities.

The Board approved delisting of Equity Shares of the Company from The Calcutta Stock Exchange Limited.

Messrs. S R Batliboi & Co. LLP, Chartered Accountants existing Statutory Auditors of the Company has expressed their unwillingness to continue as Auditors of the Company from the conclusion of next Annual General Meeting of the Company.

Messrs. Ray & Ray, Chartered Accountants have been appointed as Statutory Auditors of the Company from the conclusion of the next Annual General Meeting, subject to approval of the shareholders.

Shares of HINDUSTAN MOTORS LTD. was last trading in BSE at Rs.8.5 as compared to the previous close of Rs. 8.44. The total number of shares traded during the day was 97408 in over 271 trades.

The stock hit an intraday high of Rs. 8.75 and intraday low of 8.32. The net turnover during the day was Rs. 827697.

Source : Equity Bulls

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