The Board of Directors of the Company at its meeting held on 15.12.2007 declared Rights Issue of 3,30,00,000 Equity Shares of face value of Re.1/- each at a price of Rs.4/- per Equity Share (including a premium of Rs.3/- per Equity Share) in the ratio of 33:47 (33 shares for every 47 shares held), to raise a sum of Rs.13.20 crores to part finance its expansion and diversification plans.

The Company is in process of doubling its capacity for manufacture of aluminium extrusions from the present level of 7,500MT per annum to 15,000MT per annum at a capital outlay of Rs.34.50 crores. The project is expected to be implemented in about 15 months' time to commence commercial operation in March / April 2009.

The Company is also venturing into manufacture of 6000 TPA of Power Transmission and Distribution Line Hardware at an estimated cost of Rs.1.00 crore. This would be a downstream facility for the company as extrusions are extensively used as hardware products in installing the Power Transmission and Distribution Lines. The project is under implementation and commercial production is scheduled to commence in February / March 2008.

The projects are being financed by a mix of debt, which the Company has tied up with Axis Bank and ICICI Bank, and the Equity proposed to be raised by way of present Rights Issue.

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