High court sanctions scheme of demerger and arrangement of Nahar Exports

Nahar Exports said that the Punjab & Haryana high court at Chandigarh has sanctioned the scheme of demerger and arrangement between Nahar Spinning Mills and the company. The appointed date of the said demerger and arrangement as approved by the court is Apr. 01, 2006.

Further, as per the scheme of demerger and arrangement sanctioned by the high court, upon demerger and transfer of textile undertaking of the company to Nahar Spinning Mills, the equity shareholders of the company shall be entitled for 55 fully paid equity shares of Rs 5 each (post investment business) for every 100 fully paid up equity shares of Rs 10 each of the company on the record date to be fixed by the board.

Upon such allotment, the paid up value of each existing equity share of the company shall stand reduced from Rs 10 each to Rs 3.50 an equity share which would be reorganised into the nominal value of Rs 5 an equity share, as per scheme.

Every shareholder of the company holding 100 fully paid up equity share of Rs 10 each on the record date will be entitled for 55 fully paid equity shares of Rs 5 each of Nahar Spinning Mills and 70 equity shares of Rs 5 each of the company.