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| Exchange Disseminated Time | Kalyani Steels Ltd has informed BSE that the Board of Directors of the Company at its meeting held on October 16, 2006, inter alia, has approved the following:
1. Preferential Allotment of 1,600,000 Equity Shares of Rs 10/- each to a financial investor to be identified by a Finance Committee of Directors at a price of Rs 315/- per Equity Share.
2. Convening of an Extraordinary General Meeting on November 14, 2006, for obtaining approval of the members, for the aforesaid Preferential Allotment.
3. Authorised Finance Committee of Directors, to appoint a professional agency to advise the Company about the possibility of demerging the investment division of the Company.
4. Entering into an agreement with SJK Steel Plant Ltd (SJK Steel) to acquire 80% Equity Capital of SJK Steel, after restructuring of its capital as per CDR Scheme for an amount of Rs 240 Million. Further investment by way of Equity, may be made by the Company, upto an amount of Rs 320 Million. Prior to the restructuring, SJK Steel has a debt of Rs 13069 Million.
SJK Steel has its integrated Alloy Steel Plant at Tadipatri, Dist. Anantpur, Andhra Pradesh with a capacity to manufacture 250,000 MTs of Steel per annum. The Company in the future may expand SJK Steel's capacity by installing a second blast furnace and a rolling mill subject to market conditions and requisite approvals as may be required. The Company may consider having a strategic partner in this new project. |
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