Suryavanshi Spinning Mills announces scheme of arrangment (demerger) & reduction of capital

On 22 August 2014

Suryavanshi Spinning Mills announced that as per Scheme of Arrangement under Sections 391 to 394 and other applicable provisions of the Companies Act, 1956 (Act), the Company proposed to demerge and transfer of Yarn Unit at Bhongir together with 4 acres of land together with temporary structures in Survey Nos 558 and 560 situated at Aliabad village, Medchal Taluq, Shameerpet Mandal, Rangareddy District, Telangana state hereinafter referred to as Undertaking -1 of Suryavanshi Spinning Mills into Aananda Lakshmi Spinning Mills (Resulting Company-1) (ALSML) and Yarn Unit at Rajna, Madhya Pradesh and Garment Units at Aliabad and Bhongir, Telangana state hereinafter referred to as Undertaking - 2 of Suryavanshi Spinning Mills into Sheshadri Industries (Resulting Company-2) (SIL).

Suryavanshi spinning mills shall retain the existing yarn and Medical textile unit at Aliabad village, Shameerpet Mandal, Medchal Taluq, Ranga Reddy District, Telangana state.

Upon the Scheme coming into effect and also upon issuance of shares by the Resulting Companies, the issued, subscribed and paid up equity share capital of Suryavanshi shall be reduced from Rs. 13,26,64,230 divided into 1,32,66,423 equity shares of Rs. 10/- each to Rs. 4,90,85,760 divided into 1,32,66,423 equity shares of Rs. 3.70/- each.

Upon such reduction of share capital taking effect 1,32, 66,423 equity shares of Rs. 3.70/- each shall be consolidated to Rs. 10/- per equity share and accordingly the paid up capital of Suryavanshi post capital reduction shall be Rs. 4,90,85,760 divided into 49,08,576 equity shares of Rs. 10/- each.

Every member of Suryavanshi whose name is borne in the Register of members and records of the Registrar and Share Transfer Agent on the record date shall receive 37 new equity shares of Rs. 10/- each in lieu of 100 existing equity shares of Rs. 10/- each in Suryavanshi.

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