Visaka Industries Updates

Visaka Industries Ltd has informed that the Board of Directors of the Company at its meeting held on May 25, 2007, has allotted 3,00,000 Equity Shares and 9,00,000 Convertible Equity share warrants to M/s. Sandadi Homes Pvt Ltd, on preferential basis @ Rs 138.10/— per share.

While the Company has received total consideration for the equity shares, it has received 10% of the issue amount viz., Rs 1,24,29,000/- (Rupees One Crore Twenty Four Lakhs and Twenty Nine Thousand Only), towards allotment of 9,00,000 Convertible Equity share warrants, as application and allotment money.

As per the SEBI (Disclosure and Investor Protection) Guidelines, 2000, the option to acquire the Equity Shares can be exercised by the Warrant Holders in one or more tranches on or before the expiry of 18 months from the date of allotment of the warrants, viz., on or before the November 24, 2007.

However, the Company has informed that, the said allottee viz., M/s. Sandali Homes Pvt Ltd, has failed to exercise its option under the Warrants, to acquire the equity shares of the Company, within the time limit prescribed. As the Warrants so allotted by the Company have lapsed, the Company has, as per Clause: 13.1.2.3 (c) of said Guidelines, forfeited the amount paid by the allottee on the said warrants.