Mar 16, 2008

Natural Capsules - Preferential issue of Equity Shares & Warrants

Natural Capsules Ltd has informed that the Board of Directors of the Company at its meeting held on March 14, 2008, has approved the Preferential Allotment of the following Securities to the following Persons:

a. Laxminarayan Moondra - Equity Shares: 55,000 - Warrants: 1,20,000

b. Satyanarayan Mundra - Equity Shares: 55,000 - Warrants: 1,20,000

c. Sunil Mundra - Equity Shares: 55,000 - Warrants: 1,20,000

d. Sushil Kumar Mundra - Equity Shares: 55,000 - Warrants: 1,20,000

The Equity Shares have a face value of Rs 10/- per share and are being issued at Rs 30/- per share (inclusive of share premium of Rs 20/- per share) which is in accordance with Chapter XIII (Guidelines for Preferential Issues) of the Securities and Exchange Board of India (Disclosure and Investor Protection Guidelines, 2000) issued by the Securities and Exchange Board of India ("SEBI DIP Guidelines").

Each Warrant can be exercised for one (1) Equity Share of Rs 30/- per share (inclusive of Rs 10/- face value and Rs 20/- share premium) which is in accordance with SEBI DIP Guidelines.

The Allottees have paid full issue price of the Equity Shares and 10% of the exercise price of the Warrants at the time of subscription.

The Equity Shares and Warrants have been allotted within the time period specified in the SEBI DIP Guidelines.

The Warrants can be exercised anytime within 18 months of allotment of the Warrants. The subscription price paid for the Warrants will be adjusted against the exercise price payable at the time of exercise. In the event that any Warrant is not exercised within 18 months of allotment, the subscription price paid will be forfeited.

The issuance of all the above Equity Shares arid exercise of all the Warrants shall constitute 14.76% of the post issue paid-up share capital. The shareholding of the Promoters and Promoter Group will be 50.56% assuming allotment of all the above Equity Shares and exercise of all the Warrants.

The Investors are Persons Acting in Concert as per the SEBI Takeover Guidelines and are part of the Promoter and Promoter Group.

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