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February 27, 2008 |
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BAGALKOT UDYOG: Shareholders Approve 10:1 Stock Split According to a filing with the Bombay Stock Exchange, Bagalkot Udyog Ltd's shareholders have approved the stock split of the company's 3,00,00,000 equity shares of INR10 each to 3,00,00,000 equity shares of INR10 each. The move is pursuant to the order of the Board for Industrial and Financial Reconstruction to reduce the nominal value of the company's equity shares from INR10 per share to INR1 a share. The shareholders gave their approval at a meeting on Feb. 25. The existing share certificate in relation to the issued, subscribed and paid-up equity share capital held by the members in physical form will be canceled and new share certificate(s) will be issued in accordance with the Scheme of Rehabilitation or De-merger in the ratio of their holdings of equity Shares in the company. Bagalkot Udyog Ltd manufactures cement, clinker and other by-products. The company incurred heavy losses that led to the erosion of its entire net worth. By order dated June 2, 2000, the Board for Industrial & Financial Reconstruction, New Delhi, had declared the company as a sick industrial unit under the provisions of Sick Industrial Companies (Special Provisions), Act 1985. On May 11, 2006, the operations of the company's cement plant at Bagalkot came to a total stop. The company booked net losses of INR12.68 million for the fiscal year ended March 31, 2007, and INR59.16 million in FY 2006. For the revival of Bagalkot Udyog, the BIFR sanctioned a Scheme for rehabilitation or Demerger pursuant to which the company's cement division is demerged and transferred to Bagalkot Cement & Industries Ltd on going concern basis with effect from July 1, 2007. |
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