RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

SECTION VIII
ISSUE RELATED INFORMATION
TERMS OF THE ISSUE
The Equity Shares being offered are subject to the provisions of the Companies Act, the
Memorandum and Articles of the Company, the terms of the Red Herring Prospectus, Bid cum
Application Form, the Revision Form, the Confirmation of Allocation Note (CAN) and other terms
and conditions as may be incorporated in the allotment advice and other documents /
certificates that may be executed in respect of the Issue. The Equity Shares shall also be subject
to laws as applicable, guidelines, notifications, and regulations relating to the Issue of capital,
listing and trading of securities issued from time to time by SEBI / Government of India / Stock
Exchanges / RBI / ROC and / or other authorities, as in force on the date of the Issue and to the
extent applicable.
Authority for the Issue
The issue of Equity Shares by the Company was authorised by the resolution of the Board of
Directors passed at their meeting held on April 2, 2009, which was subject to the approval of
shareholders through a special resolution to be passed pursuant to Section 81 (1A) of the
Companies Act. Subsequently, on May 29, 2009, the shareholders approved the Issue at the
Extra-Ordinary General Meeting of the Company held at New Delhi.
Ranking of Equity Shares
The Equity Shares being offered shall be subject to the provisions of the Companies Act,
Memorandum and Articles of the Company and shall rank pari passu in all respects with the
other existing Equity Shares of the Company including rights in respect of dividend. The allotees
will be entitled to dividends and other corporate benefits, if any, declared by the company after
the date of allotment. For a description of the Company’s Articles of Association, please refer to
“Main Provisions of the Articles of Association of the Company” on page no. 277 of this Red
Herring Prospectus.
Mode of payment of dividend
The declaration and payment of dividends will be recommended by the Company’s Board of
Directors and its shareholders, at their discretion, and will depend on a number of factors,
including but not limited to the Company’s earnings, capital requirements and overall financial
condition.
Face Value and Issue Price
The Equity Shares with a face value of Rs.10 each are being offered in terms of this Red Herring
Prospectus at an Issue price of Rs. [●], which is [●], times the face value. At any given point of
time, there shall be only one denomination for the Equity Shares of the Company subject to
applicable laws. Dividend shall be paid to the shareholders as per provisions of the Companies
Act
Compliance with SEBI DIP Guidelines
The Company shall comply with all disclosure and accounting norms as specified by SEBI from
time to time. In this regard the Company has appointed Mr. Santosh Kumar Pattanayak,
Company Secretary as the Compliance Officer of the Company.
Rights of the Equity Shareholder
Subject to applicable laws, regulations, rules and guidelines and the Memorandum and Articles
of Association, the Equity shareholders shall have the following rights:
• Right to receive dividend, if declared
• Right to receive notice, annual reports, attend general meetings and exercise voting
powers, unless prohibited by law
• Right to vote on a poll either in person or by proxy
• Right to receive offers for rights shares and be allotted bonus shares, if announced.
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