Kajaria Ceramics to Issue Preferential Warrants to Promoters

New Delhi, Delhi, India

The Board of Directors Kajaria Ceramics Limited has approved to issue Preferential Warrants to the Promoters/ Promoter's Group.

The company proposes to Issue 1,27,00,000/- convertible warrants at Rs. 30 per warrant (as per SEBI guidelines)to the promoters. One warrant would entitle to apply for and obtain allotment of one equity share having face value of Rs. 2 each against one such warrant.

Out of 1,27,00,000 warrant upto 57,00,000 warrant are convertible on or before 31.3.2008 and balance 70,00,000 warrant are convertible after 31.3.2008 but before 18 months from the date of allotment.

The object of the proposed Issue is to improve the debt/equity ratio for leveraging to borrow funds for general corporate purpose including the future capex/working capital requirements of the company.

Kajaria Ceramics is the largest manufacturer of ceramic wall and floor tile in the country with a capacity of 26.4 million square meters per annum and is the only Ceramic Tile Company in the country conferred with "Super Brand" status.

About Kajaria Ceramics Limited

Kajaria Ceramics is the leading producer of ceramic floor and wall tiles in the country. The Company has two plants one each at Sikandrabad & Bhiwadi, both the plants are operating at 100% capacity. The company has recently expanded its capacity by 8.4 million sq. mt. of ceramic tiles production to have a cumulative manufacturing capacity of 26.4 million sq. mt. per annum.

Source: Kajaria Ceramics Ltd (Business Wire India)

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