Aarvee Denims - Outcome Of Board Meeting

Aarvee Denims & Exports Ltd has informed that the Board of Directors of the Company at its meeting held on April 10, 2007, has approved allotment of USD 20 million Zero Coupon Foreign Currency Convertible Bonds (FCCBs) with a maturity of 5 years and one day. The FCCBs are convertible into ordinary shares of the Company at an initial conversion price of Rs 148.93 per share. The Conversion price of the FCCBs may be reset in certain circumstances subject to floor of 85% and cap of 130% of initial conversion price immediately prior to reset. The FCCBs have a 8% per annum yield to maturity (calculated on semi-annual basis). The said issue was made at 35% premium to the reference date price. The FCCB will be listed on the Singapore Stock Exchange. Standard Chartered Bank was the sole Lead Manager for this issue.