Sarla Performance - Outcome Of Board Meeting

Sarla Performance Fibers Ltd has informed that the Board of Directors of the Company at its meeting held on February 22, 2008, has decided to issue 12,00,000 warrants of Rs 152/- each, aggregating Rs 1824 Lakhs (6,00,000 warrants to the Promoter group and 6,00,000 warrants to others, through a preferential offer on a private placement basis with a right exercisable by the warrant holders to subscribe 1 Equity Share of the Company of Rs 10/- each, at a premium of Rs 142/- per Share i.e. Rs 152/- per Share, against 1 warrant, which price has been arrived at with respect to the Relevant date i.e. February 25, 2008, in accordance with the Guidelines for preferential issues contained in chapter XIII of the SEBI (Disclosure and Investor protection) Guidelines, 2000, which is 30 days prior to the Extra Ordinary General Meeting of the Company to be held on March 26, 2008. The subscribers of the warrants will have an option to subscribe for Equity Shares of the Company any time from April 15, 2008 but not later than 18 months from the date of allotment of Warrants. The Board has decided to convene an Extra Ordinary General Meeting of the Members of the Company on March 26, 2008 to obtain consent of the Members for proposed issue of Warrants & to increase the Authorized Share Capital of the Company.

The object/s of the preferential issue to part finance the cost of expansion programme of the Company at Unit No. 2 in Silvassa to the extent of Rs 200 Lakhs and to make investment to the extent of Rs 1624 Lakhs in a special purpose vehicle formed viz. 100% Subsidiary Company Sarla Overseas Holdings Ltd, BVI in British Virgin Island to invest in a joint venture Company Sarla Fiber Honduras, S.A. de C.V. at Honduras, with 60% Share holding, to put up a project to manufacture FDY, POY & Textured Yarn with an estimated cost of Rs 7500 Lakhs.