Prakash Industries approves issue of 55,55,556 warrants

Prakash Industries Ltd has announced that the Board of Directors of the Company at its meeting held on August 25, 2007, has approved the issue of 55,55,556 warrants convertible into equity shares to Barclays Capital Mauritius Ltd or its nominee(s) and others on preferential basis subject to the approval of the shareholders pursuant to provisions of Section 81 (1A) and other applicable provisions of the Companies Act, 1956 and compliance of applicable SEBI Guidelines, on the following terms and conditions:

- Issue upto 55,55,556 warrants entitling the holders of warrants to apply for and obtain allotment of one Equity Share against each Warrant within a period of 18 months.

- The Board has also approved calling of an Extra Ordinary General Meeting, inter alia, for seeking the approval of the members of the Company for the aforesaid preferential allotment on September 19, 2007.

- For determining the issue price of the resultant warrants convertible into equity shares as per SEBI Guidelines the "relevant date" is August 20, 2007.

- Price of Rs 80 per warrant convertible into equity share has been calculated as per the SEBI Guidelines.

Source : Equity Bulls

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