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| Exchange Disseminated Time | Butterfly Gandhimathi Appliances Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 14, 2012, has approved the issue and allotment, on a preferential allotment basis, of an aggregate of 24,51,000 (twenty four lakhs fifty one thousand) equity shares of Rs.10 (Rupees Ten) each to Reliance Alternative Investments Fund - Private Equity Scheme-I (acting through its Trustee Reliance Alternative Investments Services Private Limited) (the "'Investor" and the preferential issue, the "Preferential Issue") The Board approved the Preferential Issue of equity shares to the Investor at a premium of Rs. 398 (Rupees Three
hundred and ninety eight) aggregating to an issue price of Rs. 408 (Rupees Four hundred and eight) per equity share (determined in accordance with applicable laws and guidelines) for an aggregate issue price of Rs. 100,00,08,000 (Rupees One hundred Crores and eight thousand), subject to execution of definitive documentation and obtaining all relevant statutory and other approvals. The Preferential Issue would constitute 13.709% of the total post issue paid up equity share capital of the Company computed on a fully diluted basis.
The Board has also granted its approval for the execution of necessary investment documentation and other consequential actions relating to the Preferential Issue and intends to seek the approval of the shareholders of the Company for the Preferential Issue.
The Promoters of the Company (the "Promoters") have stated that their objectives in approving the Preferential Issue are: (i) to meet the funding requirements of the Company; and (ii) to ensure compliance with the order of the Board for Industrial and Financial Reconstruction (the "BIFR") dated August 17, 2011 in case number 279/98
(with respect to the Modified Sanctioned Rehabilitation cum Merger Scheme concerning the merger of Gangadharam Appliances Limited with the Company).
Under the aforesaid order of the BIFR. the BIFR permitted the Company to issue and allot equity shares to the Promoters in terms of the merger of Gangadharam Applianees Limited with the Company despite their aggregate shareholding in the Company pursuant to such issue of shares exceeding the minimum public shareholding requirements prescribed under applicable laws, subject to the Promoters divesting their shareholding to comply with the minimum public shareholding requirements over a period of 3 (three) years from
the date of allotment of shares pursuant to the aforesaid merger. |
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