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SUJANA METAL PRODUCTS LIMITED
In pursuance of special resolution
passed by the members of the
Company at their Extraordinary General
Meeting held on 24th October, 2009,
to issue 2,44,62,857 Equity shares of
Rs.5/- each at a price determined as
per the provisions of SEBI (Issue of
Capital and Disclosure Requirements)
Regulations, 2009, of Rs.17.50/- per
share to the Promoters or Promoter
Group members and/or non-promoters
for meeting the capital expenditure
in respect of expansion programme,
general corporate expenditure and
also to part finance the working capital
requirements. The Company allotted
2,44,62,857 equity shares of Rs.5/-
each to the promoters& Non-promoters
on 19.11.2009 the proceeds of the issue
have been utilized for the purpose for
which they have been raised.
(b). Allotment of 5,26,31,500 equity
shares of Rs. 5/- each at a premium
of Rs. 21.676 per share underlying
52,63,150 Global Depository Receipts
(GDRs) :
Pursuant to the special resolution
passed by the members of the Company
at the Extraordinary General Meeting
held on 24th October, 2009, your
Company had successfully completed
the issue and allotment of 5,26,31,500
equity shares of Rs. 5/- each at a
premium of Rs. 21.676 per share
underlying 52,63,150 Global Depository
Receipts (GDRs) representing 10 equity
shares per GDR, aggregating US$
30.00 Millions. Your Company invested
the funds raised through GDRs, in it’s
Wholly Owned Subsidiaries. The Global
Depository Receipts have been listed on
the Luxembourg Stock Exchange.
(c). Allotment of 5,00,00,000 convertible
warrants of Rs. 5/- each at a price of
Rs. 21/- per warrant on preferential
basis to the Promoters and Promoters
Group:
In pursuance of special resolution
passed by the members of the Company
through Postal Ballot on 24.12.2009, to
issue 5,00,00,000 convertible warrants
of Rs.5/- each at a price determined
as per the provisions of SEBI (Issue of
Capital and Disclosure Requirements)
Regulations, 2009, of Rs.21/- per share
to the Promoters and Promoter Group
for meeting the capital expenditure
in respect of expansion programme,
general corporate expenditure, to part
finance the working capital requirements
and also to part finance acquisition
of steel units. The Company allotted
5,00,00,000 Convertible Warrants
to the promoters & promoters group
on 04.01.2010. These warrants are
compulsorily convertible into equity
shares within a period of eighteen
months from the date of allotment i.e.,
04.01.2010. As on the date of this report,
there are no outstanding warrants for
conversion. The proceeds of the issue
have been utilized for the purpose for
which they have been raised.
7. Scheme of Amalgamation
Board of Directors of the Company at their
meeting held on 12th November, 2010
approved the Scheme of amalgamation
between (1) M/s Lakshmi Gayatri Industries
Private Limited, (2) M/s Glade Steel Private
Limited, (3) M/s Sri Ganga Steel Enterprises
Private Limited and (4) M/s Topaz Steel India
Limited with M/s Sujana Metal Products
Limited w.e.f: 01.10.2009. The Amalgamation
would result in synergy of operations and
also reduce the overhead and administrative
costs substantially, by combining these units
it will meet the competition in the domestic
and international market and also helps to
meet the international standards and it will
also reduce the inventory levels which will
result in significant savings in procurement of
inventory and carrying costs of the inventory.
Necessary approvals from the Bombay
Stock Exchange Limited (BSE), National
Stock Exchange of India Limited (NSE) and
Madras Stock Exchange Limited (MSE)
have been obtained vide their letter nos.
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