9 February 2007
Diamond Cables Ltd
Diamond Cables Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 08, 2007 has discussed and approved the following: 1. In order to finance the Companies expansion plans in HT power cables, finance the Working Capital Requirements of Power Infrastructure Group and to Create a fund for acquiring Companies in the Power Equipment space, the Company proposes to raise Rs 52.5 Crore by making preferential allotment of Shares. - The Board of Directors approved to Issue, offer and allot 25,00,000 Zero Interest Share warrants to the Promoters group, their friends and associates at a Price of Rs 150 per Share being the price more then determined by SEBI. Formulae on preferential basis. - The Board of Directors approved to Issue, offer and allot 10,00,000 Zero Interest Share Warrants to Clearwater Capital Partners Cyprus Ltd part at a Price of Rs 150 per Share being the price more then determined by SEBI. Formulae on preferential basis. - The Board fixed a date for March 09, 2007 for a EOGM for the approval of above said preferential allotments. 2. The Board of Directors of the Company has approved the Company's expansion into manufacture of High Tension Power Cables. The proposed expansion project estimated to Cost Rs 18 crores would be set up at Village Vadadala Taluka Savli Dist Vadodara near the existing Cables manufacturing facility of the Company. The proposed Expansion includes the Investment, in HT Extrusion facility with a capacity of 3000 kms per annum; The Company is also adding balancing equipments like Copper Wire Drawing Facility, Laying machines and Armouring machines. The proposed HT Cables Facility is State of Art computerized facility with the latest Technology which shall result in Huge Saving in the manufacturing facility. The Company's expansion into HT Cables will not only result in higher utilization of its Large Conductors and rod manufacturing facilities but the Company would be able to offer the entire gambit of HT and LT power Cables to its customers. The Expansion Project is expected to commence production before October 2007 and will add significantly to the Companys revenue in year 2007-2008. 3. To Companies "Power Infrastructure Group" of the Company has participated in Various turnkey projects under the RGGVY Scheme, Various HT and LT Lines Turnkey Projects & Feeder Franchise Projects, the Company expects to Generate Substantial business in the Year 2007-2008. In order to meet its financial requirements and capital expenditures the Board approved an Investment of Rs 25 crores in its "Power Infrastructure Group Business" over period of One year. 4. The Board received and approved a request from Clearwater Capital Partners Cyprus Ltd for conversion of 12,50,000 FCD into equity Shares of Rs 10 each being 50% of the total amount of 25,00,000 FCD issued to CCP Cyprus Ltd in August 2006. 5. In order to Share the Companies growth with its employees, the Board discussed a Employees Stock Options / Grant Scheme for its permanent employees in Order to facilitate the process of the scheme the Approved approved the scheme in principle and authorized the Whole Time Directors for the appointment of a Merchant Banker and Formation of a Employee Stock Option Trust to be Independently Handled by a Trustee & for Creation and constitution of Remuneration / Compensation Committee for framing the detailed terms and conditions for ESOP.Safe Harbor Statement:Some forward looking statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Investors are advised to consult their certified financial advisors before making any investments.
by erectusplus at 16:51:00 |
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