Binny to issue preference shares

Binny Ltd has intimated the Bombay Stock Exchange that at the annual general meeting held on September 24, 2004, members have given their inter alia consent for a scheme of rehabilitation and the allotment of preference shares on a private placement basis.

Under the scheme of rehabilitation, the board will be authorised to implement the scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) and to seek modification to the sanctioned scheme if any required and subsequent amendments, modifications, directions, permissions, sanctions and other terms and conditions issued thereafter by the BIFR or other authorities to the said scheme.

For the allotment of preference shares, the board will be authorised to issue, offer and allot in one or more tranches up to a maximum of 15,80,00,000 cumulative redeemable preference shares of Rs 5 each.

The dividend rate will be not be higher the State Bank of India's prime lending rate, after considering tax benefits if any.

The board's share transfer committee meeting held on April 16, 2004 allotted one equity share of Rs 5 for every equity share of Rs 10 held by the public which will be other than promoters and co-promoters in Binny Ltd. A total of 2,23,19,410 equity shares of Rs 5 each were allotted.