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