Nagarjuna Fertilizers - Updates

Nagarjuna Fertilizers & Chemicals Ltd has informed that the Board of Directors of the Company at its meeting held on April 27, 2007 approved the proposal to issue 2,25,00,000 equity shares of Rs 10/- each to the Core Promoters of the company on preferential basis pursuant to the guidelines prescribed by Securities and Exchange Board of India for preferential issues. The said proposal was approved by the shareholders at the 31st Annual General Meeting held on September 21, 2007. The Stock Exchange had through letter dated October 22, 2007 granted In-principle approval for the allotment of 2,25,00,000 equity shares of Rs 10/- each to the Core Promoters by way of preferential allotment. The Warrants Allotment Committee of Directors at its meeting held on October 26, 2007 allotted 2,25,00,000 equity shares of Rs.10/- each as per the details given below: 1. Name of the Core Promoter : Nagarjuna Management Services Pvt Ltd - Total No of warrants : 74,97,500 2. Name of the Core Promoter : Chinnar Securities Pvt Ltd - Total No of warrants : 68,73,750 3. Name of the Core Promoter : KRR Holdings Pvt Ltd - Total No of warrants : 68,73,750 4. Name of the Core Promoter : KS Raju & Associates Holdings Pvt Ltd - Total No of warrants : 12,55,000 The Core Promoters had paid 10% of the value of the warrants allotted to them. The Core Promoters are required to pay the balance 90% of the value of the warrants on or before April 26, 2009 being the period of 18 months from the Date of Allotment. The Core Promoters represented by Nagarjuna Holdings Private Ltd (NHPL) by their letter dated March 26, 2009 informed the Company of their inability to convert the said warrants into equity shares. The Warrants Allotment Committee of Directors of the Company had through Resolution dated March 26, 2009 approved the cancellation / annulment of the allotment of 2,25,00,000 warrants issued to the Core Promoters as also forfeiture of the 10% of the value of the warrants received by the Company.