Kirloskar Brothers - Scheme of Arrangement - Swap Ratio

Kirloskar Brothers Ltd has informed BSE that the Committee of Directors for Scheme of Arrangement, approved the scheme of arrangement ("Scheme") between the Company, Kirloskar Brothers Investments Ltd and their respective shareholders, for transfer and vesting of Company's certain investments to Kirloskar Brothers Investments Ltd (KBIL).

The said Scheme of Arrangement inter alia provides for re-organization of the share capitals of the Company and KBIL and the transfer of and vesting of said Investments, subject to approvals from shareholders and Honourable High Court at Bombay and all other necessary approvals.

Upon the Scheme becoming effective and upon the reorganization of the share capital of the Company and KBIL, in terms of the Scheme, the Company will, without any further application, act or deed, or without any further payment, issue and allot to every member of the Company, holding fully paid-up equity shares in the Company and whose names appear in the Register of Members of the Company on the Record Date, as the Board of Directors of the Company may determine, in respect of every 20 (twenty) equity shares of the face value of Rs 2/- (Rupees two) each fully paid up, held by a shareholder in the Company, 15 (fifteen) equity shares of the face value of Rs 2/-(Rupees two) each of the Company, credited as fully paid-up with rights attached thereto.

Further, for every such 15 (fifteen) equity shares so held by such shareholder in the Company, Kirloskar Brothers Investments Ltd will issue and allot, 1 (one) equity share of the face value of Rs 10/- (Rupees ten) of KBIL, credited as fully paid up with rights attached thereto, subject to the other terms and conditions of the Scheme.