Nahar Exports Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 30, 2006, has approved the scheme of Demerger and Arrangement between Nahar Spinning Mills Ltd (‘NSML’) and the Company. Pursuant to the scheme, Company’s Textile business is proposed to be hived off and shall vest in NSML (post demerger of investment business) in accordance with the terms of the Scheme.
Upon coming into effect of the scheme and vesting of the textile business of Company in NSML (post demerger of investment business). NSML shall issue and allot, without any further act or deed, 55 Fully paid up equity shares of Rs 5/- each to the shareholders of the Company for every 100 fully paid up Equity shares of Rs 10/- each and upon such allotment by NSML the paid up value of each equity share of the Company shall stand reduced from Rs 10/- to Rs 3.5 per share which shall be reorganized into equity share of Rs 5/- per share through this scheme of Demerger and Arrangement.
Thus upon sanction of the scheme shareholders of the Company holding 100 Fully paid up equity shares of Rs 10/- each on the record to be fixed for the purpose, shall receive 55 Fully paid up equity shares of Rs 5/- each in NSML (post demerger of investment business) and 70 Fully paid equity shares of Rs 5/- each in the Company.
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