Guj NRE Coke announces Bonus Shares
Ahmedabad, Sept 17 (UNI) Armed with shareholders approval for the issue of bonus shares in the ratio of two shares for every five held, the Board of Directors of Gujarat NRE Coke Limited today set the record date for the same as October 20, 2008.
The board has decided to approach its shareholders seeking their approval for re-classification of the Authorised Capital and amendment of relevant clauses of the Memorandum&Articles of Association of the Company for issue of Equity Shares of Rs 10 each, with differential rights (differential rights as to dividend, voting or otherwise), upto an amount not exceeding 25 per cent of the total issued Equity Share Capital of the Company, with power to the Board to decide on the extent of variation in such rights and to classify and re-classify from time to time such shares into any class of shares, a Company release said here.
After obtaining shareholders approval for the same, the company proposes to issue rights shares with differential voting rights (DVR) to the existing shareholders of the company in the ratio of 1 DVR share for 450 existing equity shares at a price of Rs 1000 per DVR share, the release said.
The shares will carry higher voting rights while pari pasu in all other respects to the existing equity capital of the company.
The issue proceeds will be utilized to part finance the company's future expansion plans.
Explaining
the
rationale
behind
the
move,
Mr
Arun
Kumar
Jagatramka,
Vice
Chairman
and
Managing
Director
said,
''Currently,
issue
of
DVR
shares
appears
to
be
a
better
option
for
raising
promoter's
voting
rights
in
the
company
than
the
conventional
preferential
issue
route,
which
is
generally
considered
unfair
to
the
interest
of
the
minority
shareholders.'' Mr
Jagatramka
said,
''The
higher
premium
and
lower
dilution
will
help
enhance
the
book
value
and
benefit
the
non
promoter
shareholders.
From
where
I
see
it,
it
is
a
win
win
situation.''
UNI
MP
SR
NP2056