Bombay Rayon EGM approves fund raising plans

Bombay Rayon Fashions Ltd has announced that the members at the Extra Ordinary General Meeting (EGM) of the Company held on December 05, 2006, inter alia, have accorded to the following:

1. Increase in Authorised Share Capital from Rs 50 Crores to Rs 70 crores by creation of additional 2 crores equity shares of Rs 10/- each and consequent amendment to the Memorandum and Articles of Association of the Company.

2. Issue of one or more kind of securities (FCCBs, ADRs, GDRs) to Qualified Institutional Buyers for an aggregate sum not exceeding Rs 300 Crores (inclusive of such premium as may be determined by the Board) through placement document in accordance with the SEBI Guidelines for Qualified Institutions Placement to the extent of such amount as is not issued or placed with Qualified Institutions Placement out of the aforesaid limit of Rs 300 Cores.

3. Issue of upto 61,00,000 warrants convertible into equivalent number of equity shares of Rs 10/- each to Bombay Rayon Clothing Ltd, an equity belonging to promoter group at an exercise price of Rs 207/- pursuant to SEBI Guidelines for Preferential Issues.

4. Authority to Board to borrow from one or more sources from time to time notwithstanding that the total amount of borrowings may exceed the aggregate of the paid up capital and free reserves of the Company provided, that the total borrowings at any time shall not exceed Rs 600 crores.

Source : Equity Bulls

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