HLL Bonus Debenture Scheme Approved By Hon'ble Bombay High Court

The Arrangement had earlier been approved by shareholders on August 9, 2002, at a Court-convened meeting. The Scheme provides for issue of Bonus Debentures, from the General Reserves, for Rs.1321 crores in the ratio of one Bonus Debenture of Rs.6/-for every share of Re.1/- and a Special Dividend of Rs.2.76 per share of Re.1/-, to be paid by reference of the same Record Date, and to form part of an integrated transaction. This would aggregate a payment of Rs.1928 crores to the shareholders.

The company will now approach the Reserve Bank of India (RBI) for their requisite approvals before taking steps to implement the Scheme. The Record Date will be fixed after the requisite approval of the RBI is received.