Vardhman Textiles - Outcome Of Board Meeting

Vardhman Textiles Ltd has informed that the Board of Directors of the Company at its meeting held on February 26, 2007, has approved a proposal for vesting of the sewing thread undertaking of the Company comprising of thread units located at Hoshiarpur & Ludhiana (Punjab), Perundurai (Tamil Nadu) alongwith the spinning unit at Hoshiarpur, including all assets and liabilities associated with the said undertaking in its subsidiary,The salient features of the Scheme are as follows: For every 2 shares held in VTL, each equity shareholder of VTL will be issued 1 equity share of face value of Rs 10/- each credited as fully paid up in VYTL and shall retain 1 equity share of the face value of Rs 10/- each as fully paid up in VTL. This swap ratio is based on the recommendations of independent valuer, i.e., M/s. ICICI Securities Ltd. The Scheme is subject to the requisite approval of the shareholders and creditors of the Company, VTL & VYTL, the Honble High Court of Punjab and Haryana at Chandigarh, and any other authorities, which by law may be necessary.