Patel Roadways allots shares to POBCL shareholders, recommends 5% dividend

Patel Roadways Ltd has announced that the Board of Directors of the Company at its meeting held on October 31, 2005, has allotted 53,86,612 equity shares of Rs 10/- each, aggregating to Rs 5,38,66,120/- out of the share capital of the Company to the persons who were shareholders of Patel On-Board Couriers Ltd (POBCL).

The aforesaid equity shares were allotted in the ratio of 23 equity shares of the Company for 20 equity shares held in POBCL. These equity shares have been allotted pursuant to the Scheme of Amalgamation (the Scheme) of POBCL with the Company, which was approved by shareholders of both Companies at their respective Court Convened meetings held on May 19, 2006 and by the Hon'ble High Court of Judicature at Bombay on August 11, 2006.

As stated in the Scheme, while making the allotment, the fractional equity shares have been rounded off to the nearest integer.

The 53,86,612 equity shares under consideration will in all respect, including the dividend and voting rights, rank pari-passu with the existing equity shares of the Company.

The aforesaid equity shares will be entitled to the dividend for the year ended March 31, 2006, in full. Further the Company has informed that, the Board of Directors at its meeting held October 27, 2006, had recommended a dividend @ 5% on the equity share capital of the Company. The dividend will be paid on the increased capital i.e. including the equity shares under consideration. The dividend will be payable to shareholder after the same is declared at the ensuing Annual General Meeting of the Company scheduled to be held on December 15, 2006.

Source : Equity Bulls

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