The Hindu Business Line : Sujana Metal, Universal offer equity to SASF

The boards of Sujana Metal Products Ltd (SMPL) and Sujana Universal Industries Ltd (SUIL) at their respective meetings held on Monday have approved resolutions on offering equity and cumulative preference shares in favour of the Stressed Assets Stabilisation Fund (SASF), Chennai, to increased the authorised share capital.

The SMPL board has passed a resolution to increase its authorised share capital from Rs 45 crore to Rs 65 crore.

The board plans to issue equity shares to SASF by way of preferential allotment under Section 81 (1A) of the Companies Act, 1956 to the extent of Rs 4.92 crore consisting of 6,16,000 (approximate) equity shares of Rs 10 each. The offer is subject to change based on the determination of share issue price as per SEBI guidelines.

Further, the SMPL board approved a plan to issue 1 per cent cumulative redeemable preference shares to SASF under Sections 80 and 81 of the Companies Act, 1956 to the extent of Rs 17.9 crore consisting of 17,90,160 preference shares of Rs 100 each, the company informed the stock exchanges.

To hike share capital

Meanwhile, the SUIL board has also passed resolution to increase its authorised share capital from Rs 50 crore to Rs 80 crore.

The company proposes to issue equity shares to SASF through preferential allotment under Section 81 (1A) of the Companies Act, 1956 to the extent of Rs 6.03 crore consisting of 22,00,000 (approximate) equity shares of Rs 10 each. This proposal is subject to change based on the determination of share issue price as per SEBI guidelines.

The SUIL board has also decided to issue one per cent cumulative redeemable preference shares to SASF under Section 80 and 81 of the Companies Act, 1956 to the extent of Rs 24.36 crore consisting of 24,36,200 preference shares of Rs 100 each.

More Stories on : Preferential Allotments | Metals

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