Singer India allots shares to Singer B.V

Singer India Ltd has announced that pursuant to the order passed by the Board of Industrial and Financial Reconstruction (BIFR) vide order dated April 2008 the Promoter of the Company viz, Singer (India) B.V were required to induct an amount of 8.35 Crores in two installments of Rs. 3.85 crores and Rs. 4.5 crores by way of equity participation. The Company had already taken approval of the members in the Annual General Meeting held on August 19, 2008 to issue equity shares of Rs. 8.35 crores to Singer. This was also put on the record with the Reserve Bank of India.

So far the Company had received an amount of Rs. 6,85,69,273/- in two tranches and had allotted 68,56,927 shares of Rs. 10 each to Singer (India) B.V, Netherland. The balance of Rs. 1,49,30,727/- was left to be received from Singer (India) B.V, Netherland for allotment of 14,93,073 equity shares of Rs. 10/- each. As per the BIFR's scheme the Company was also required to convert 10% of the External Commercial Borrowings into equity shares and the Company had issued 827900 equity shares against this conversion.

The Company has now received an amount of Rs. 1,50,82,321/- on February 05, 2010 from Singer Asia Ltd. on behalf of Singer (India) B.V, Netherlands towards subscription for issue of equity shares to Singer (India) B.V. The balance excess received (due to exchange variation) amounting to Rs. 1,51,595/- will be kept as a surplus and will be refunded back to Singer (India) B.V subject to compliances with the rules and regulations.

Hence, the Board of Directors of the Company on February 08, 2010 had passed a circular resolution as per section 289 of the Companies Act, 1956 for the allotment of 14,93,073 equity shares of Rs. 10 each to Singer (India) B.V, Netherlands. With this the promoters have fully complied with eth BIFR's requirement to induct fresh funds.

The stock was trading at Rs.29.75, up by Rs.0.15 or 0.51%. The stock hit an intraday high of Rs.30.50 and low of Rs.29.35.

The total traded quantity was 3981 compared to 2 week average of 20962.

Source : Equity Bulls

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