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Max India shareholders okay 1:1 bonus, ESOP

Our Bureau

NEW DELHI, March 29

THE shareholders of Max India Ltd (MIL) have approved a bonus issue of shares in the ratio of 1:1, an employee stock option programme, increase in the authorised capital and the appointment of statutory auditors at the company's extraordinary general mee ting (EGM) held here today.

The record date for the bonus issue is to be decided at the company's next board meeting scheduled for the last week of April. Today's EGM also announced an employee stock option programme (ESOP) to the extent of five per cent of the company's share capi tal in any one year to employees, Wholetime and Managing Directors and Non-Executive Directors (excluding promoter directors) of MIL and its subsidiaries.

According to a company release, for the issue of bonus shares and the ESOP, the shareholders also approved the increase in the authorised capital of the company. The share capital would increase from Rs. 40 crores (Rs. 15 crores in equity and Rs. 25 cror es in preference) to Rs. 50 crores (Rs. 30 crores in equity and Rs. 20 crores in preference). The existing paid-up capital of MIL will increase from Rs. 11.53 crores to Rs. 23.06 crores after the issue of bonus shares and will further increase on account of the ESOP.

At the company's EGM, the shareholders have accorded their consent to entering into an agreement with the National Stock Exchange (NSE) for the listing of the company's securities on the exchange. The shareholders have also consented to delisting the sec urities of the company from the stock exchanges in Ahmedabad and Calcutta.

MIL has also hired PriceWaterhouseCoopers (PwC) as the statutory auditors of the company for assisting in international best practices in accounting. The company has identified life insurance, healthcare and information technology as its growth engines. It also has interests in bulk pharmaceuticals, telecom services, plastics and electronic components.