Pradeep Metals Ltd: Outcome of Board Meeting

Pradeep Metals Ltd has informed BSE that Board of Directors at their meeting held on April 8, 2011, inter alia, has decided the following:

1. Recommended to the Shareholders to consider and approve payment of arrears of dividend on 5,19,800, 10% Optionally Convertible Cumulative Redeemable Preference Shares of Rs. 100/- each as follows:

1. Financial Year : 1999-2000
- Dividend for the year (Rs.) : 109589.00
- Cumulative dividend at the end of the Year (Rs.) 109589.00

2 Financial Year : 2000-2001
- Dividend for the year (Rs.): 5193660
- Cumulative dividend at the end of the Year (Rs.): 5303249.00

3. Financial Year: 2001-2002
- Dividend for the year (Rs.) 5198000
- Cumulative dividend at the end of the Year (Rs.) : 10501249.00

In addition, dividend tax will be paid by the Company at such rate as may be applicable at the time of declaration / payment of dividend.

2. Approved preferential issue of 29,00,000 Equity Shares of Rs.10/- each and 4,50,000 Warrants convertible into equal number of Equity Shares of Rs.10/- each in compliance with applicable provisions of Companies Act, 1956, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 and any other applicable Law, at a premium of Rs. 12/- per share (i.e. total issue price being Rs. 22/- per equity share) to the following Allottees.

1. Name of the Allottee : Labh Capital Services Pvt. Ltd.
No. of Shares of Rs.10/-each : 4,80,000

2. Name of the Allottee : Manhar Properties Pvt. Ltd.
No. of Shares of Rs.10/-each : 4,80,000

3. Name of the Allottee : Rachana Finance And Investments Pvt. Ltd.
No. of Shares of Rs.10/-each : 4,80,000

4. Name of the Allottee : Repute Properties Pvt. Ltd.
No. of Shares of Rs.10/-each : 4,80,000

5. Name of the Allottee : Dytel Finance And Investments Pvt. Ltd
No. of Shares of Rs.10/-each : 4,80,000

6. Name of the Allottee : Raj Krishanlal Marwah
No. of Shares of Rs.10/-each : 2,50,000

7. Name of the Allottee : Benu Nitin Marwah
No. of Shares of Rs.10/-each : 2,50,000

Total Equity Shares29,00,000

Equity Warrants:

1. Name of the Allottee : Rabale Engineering India Private Limited
No. of Warrants : 4,50,000

Total Equity Warrants : 4,50,000

3. Approved Notice of Extra Ordinary General Meeting of members of the Company, to be held on May 06, 2011, for the purpose of consideration and approval of the items mentioned in Para 1 and 2 above.