Maxwell Industries Updates

Maxwell Industries Ltd has informed that the Company had entered into a Share Subscription cum Shareholder Agreement with Reliance Capital Partners on May 19, 2006 to issue 10% Optionally Convertible Preference Share (OCPS) for a period of 18 months. According to the terms of the agreement, the shareholder had the option to either convert its Preference Shares to Equity Shares or Redeem its Preference Shares at the end of 18 months i.e. November 18, 2007.

The Board of Directors of the Company at its meeting held on October 31, 2007 considered the matter and approved the redemption of OCPS shares along with dividend and other appropriations if the shareholders exercise their option to redeem the shares or convene a Board Meeting for the issue of equity shares against the OCPS in case the shareholders exercise their option to convert the shares to equity.

Reliance Capital Partner communicated to the Company that they would opt for redemption of the OCP Shares. Accordingly the Company has redeemed the OCPS held by Reliance Capital Partners.