Radha Madhav to issue debentures for expansion plans

Radha Madhav Corporation Ltd has announced that the Board of Directors of the Company at its meeting held on September 14, 2006 has;

1. Approved issue of the 10,00,000 Unsecured 10%, Convertible Debenture of Rs 100/- each to foreign investor India Star (Mauritius) Ltd. for expansion of Pharma packaging business at Uttaranchal as well as Daman, for which Extra Ordinary General Meeting shall be convened.

2. In totality Company has tied up Rs 18.10 Crores for expansion of Pharma packaging business at Uttaranchal as well as Daman by way of Rs 10.00 Crores Convertible Debenture and issue of 18,00,000 equity shares @ of Rs 45 per share to a foreign investors aggregating Rs 8.10 Crores.

3. The money raised will be utilized for setting up new project at a cost of 8650 lacs for R & D and manufacturing of high-end Pharma packaging materials confirming to cGMP and HACCP standards. Production capacity will be exceeding 16000 MT per annum for PVdC coating, 1000 MT for collapsible tubes and Tenter-frame to produce 4000 MT of bilaterally oriented PVC shrink film.

4. Construction at Daman is 80% completed and provisional permission for construction at Uttaranchal is received by the Company.

5. Board has taken progress / stock of SAP implementation and its satisfactory.

Source : Equity Bulls

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