Dhandapani Finance to sell assets to Zwirn Pragati Capfin Pvt Ltd for Rs 41 Crores

Dhandapani Finance Ltd has announced that the Board of Directors of the Company at its meeting held on June 09, 2008, has approved the sale of the business of the Company, including all its tangible & intangible assets and non-tax liabilities, by way of a slump sale, as defined in the Income Tax Act, 1961, to Zwirn Pragati Capfin Pvt Ltd, an NBFC with its Registered Office in Amritsar and Corporate Office in Delhi (ZP), through appropriate business transfer agreements and any ancillary document related thereto for a consideration of not less than Rs 41,00,00,000/- (Rupees Forty One Crores Only), and on such terms and conditions as may be decided by the Board of Directors of the Company and subject to negotiation with the Board of ZP. Further, the approval of the shareholders for the slump sale would be taken by a Postal Ballot.

The Board decided that because of the drastic deterioration of the capital market conditions in India since the filing of the Draft Letter of Offer with the Securities and Exchange Board of India in December, 2007 for the proposed rights issue of the Company, the possibility of the rights issue being successful has reduced considerably and the rights issue in all probability will not be able to achieve its objectives. The Board of Directors decided that they would withdraw the rights issue and would not go ahead with it. Further, Mr. Ravichandran and Mr. Nagarajan, Directors of the Company were authorised to inform the merchant banker for the issue, centrum Capital Ltd, the decision of the Board and take all steps that may be necessary for the withdrawal of the rights issue.

The stock was trading at Rs.28, down by Rs.1.75 or 5.88%. The stock hit an intraday high of Rs.28.80 and low of Rs.28.

The total traded quantity was 450 compared to 2 week average of 1384.

Source : Equity Bulls

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