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1 for 3 Renounceable Rights Issue to raise $94m Fully Underwritten

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1 for 3 Renounceable Rights Issue to raise $94m Fully Underwritten Powered By Docstoc
					                         ABN 15 121 415 576 · ASX Code INE
             Level 4, 99 Queen Street · Melbourne VIC 3000 · Australia
                    Tel +61 3 9629 5895 · Fax +61 3 9602 2874 ·
                               www.indiaequitiesfund.com.au
                                                 
        
       30 July 2009                      ASX RELEASE                         ASX Code: INE



       1 for 3 Renounceable Rights Issue to raise $9.4m
                       Fully Underwritten
        
India Equities Fund Limited (“Company”; ASX: INE) advises that it will undertake a fully
underwritten pro-rata renounceable Rights Issue offering eligible shareholders the
opportunity to subscribe for 1 New Share for every 3 existing Shares held on 10 August
2009 at an issue price of 40 cents per New Share to raise approximately $9.4 million. An
Option expiring 31 August 2010 and with an exercise price of 40 cents per Option will be
issued for every 1 New Share subscribed for.

The Rights Issue has been fully underwritten by Patersons Securities Limited.

Key Terms of the Rights Issue

 Type of Offer              Renounceable Rights Issue
 Issue Ratio                1 New Share for every 3 Shares held
 Issue Price                $0.40 cents per New Share
 Issue Price discount       Approximately 29% to the market closing price of $0.565 per
                            share on 27 July 2009
 Options                    1 Option to be issued for every 1 New Share subscribed for
 Issue Ratio
 Attaching Options          Exercise price of 40c, expiring 31 August 2010
 Terms
 New shares issued          Approximately 23.526 million
 New Options issued         Approximately 23.526 million
 Funds Raised               Approximately $9.4 million before costs
 Underwriter                Patersons Securities Limited
 Underwriting fee           Approximately 5.5% of the funds raised

A Prospectus has been lodged with ASX and ASIC today with full details of the Rights
Issue. The Prospectus with Entitlement and Acceptance forms will be despatched to
Shareholders on 12 August 2009 with instructions on how eligible shareholders may
accept their Entitlement.
Key Dates1
Lodgement of Prospectus with ASIC and                                 30 July 2009
announcement of Offer
Ex Date and Rights trading starts on the ASX                          4 August 2009
Record Date for determining Shareholder                               10 August 2009
Entitlements
Prospectus and Entitlement and Acceptance                             12 August 2009
Forms despatched to Shareholders
Rights trading ends                                                   19 August 2009
Securities quoted on deferred settlement basis                        20 August 2009
Closing Date of Offer                                                 26 August 2009
Allotment of New Shares and issue of Options                          2 September 2009
Despatch of holding statements                                        3 September 2009
Commencement of normal trading of New                                 4 September 2009
Shares on ASX
1
  All dates are subject to change and accordingly are indicative only. The Company reserves the right to amend
this indicative timetable. In particular, the Company reserves the right, subject to the Corporations Act, the ASX
Listing Rules and the approval of the Underwriter, to extend the Closing Date or to withdraw the Rights Issue
without prior notice. Any extension of the Closing Date will have a consequential effect on the date of issue of the
New Shares and Options.


Use of Funds

The funds raised will be substantially (about 88%) converted to Indian Rupees and
incorporated as part of the Company’s investment portfolio of listed Indian shares
within 15 days of the completion of the Offer and, after payment of costs and
expenses, the balance will be applied for general corporate purposes.

John Pereira, India Equities CEO, today said “This financing, against a backdrop of
continuing economic growth and INE’s committed approach to its investment
objectives, leaves the Company well placed to deliver investment value from the
Indian Market.”




Yours sincerely,




Mark Licciardo
Company Secretary
                                                                                                        Appendix 3B 
                                                                                            New issue announcement 
 

 

                                               Appendix 3B
                            New issue announcement,
                 application for quotation of additional securities
                                  and agreement
 
Information or documents not available now must be given to ASX as soon as available.  Information and 
documents given to ASX become ASX’s property and may be made public. 
Introduced 1/7/96.  Origin: Appendix 5.  Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005. 
 
 
Name of entity 
India Equities Fund Limited
 
ABN 
15 121 415 576
 
We (the entity) give ASX the following information. 
 
 
Part 1 - All issues
You must complete the relevant sections (attach sheets if there is not enough space). 
 
    1    +Class  of  +securities  issued  or  to             Fully Paid Ordinary Shares and Options
         be issued 
          
          
     
    2    Number    of  +securities  issued  or  23,526,390 Fully Paid Ordinary Shares and
         to  be  issued  (if  known)  or  23,526,390 Options
         maximum  number  which  may  be 
         issued 
          
          
     
    3    Principal  terms  of  the  +securities              Fully Paid Ordinary Shares – fully paid
         (eg,  if  options,  exercise  price  and            ordinary shares issued at $0.40 each
         expiry  date;  if  partly  paid 
         +securities,          the       amount              The Options are exercisable on or prior to
         outstanding  and  due  dates  for                   5.00pm on 31 August 2010 and at an
         payment;          if       +convertible 
                                                             exercise price of $0.40 per Option
         securities,  the  conversion  price 
         and dates for conversion) 




 
+ See chapter 19 for defined terms. 
 
          A
24/10/2005  ppendix 3B  Page 3 
Appendix 3B 
New issue announcement 
 

 
          
    4    Do the  +securities rank equally in        The Fully Paid Ordinary shares will rank
         all  respects  from  the  date  of         equally with existing fully paid ordinary
         allotment  with  an  existing  +class      shares on issue.
         of quoted +securities? 
                                                    There are currently no quoted Options on
         If the additional securities do not        issue.
         rank equally, please state: 
         • the date from which they do 
         • the  extent  to  which  they 
             participate  for  the  next 
             dividend,  (in  the  case  of  a 
             trust,  distribution)  or  interest 
             payment 
         • the  extent  to  which  they  do 
             not rank equally, other than in 
             relation  to  the  next  dividend, 
             distribution       or      interest 
             payment 
          
    5    Issue price or consideration               The issue price of a Fully Paid Ordinary
                                                    Shares     is   $0.40.   No     additional
                                                    consideration is payable for the issue of
                                                    Options
          
    6    Purpose of the issue                       The funds raised will be substantially
         (If issued as consideration for the        (about 88%) converted to Indian Rupees
         acquisition  of  assets,  clearly          and incorporated as part of the Company’s
         identify those assets)                     investment portfolio of listed Indian shares
                                                    within 15 days of the completion of the
                                                    Offer and, after payment of costs and
                                                    expenses, the balance will be applied for
                                                    general corporate purposes.
          
          
          
     
    7        Dates  of  entering  +securities       2 September 2009
             into  uncertificated  holdings  or 
             despatch of certificates 
              
              
              
                                                    Number                 +Class
    8        Number  and  +class  of  all           94,105,559             Fully Paid Ordinary
             +securities  quoted  on  ASX 
                                                                           Shares
             (including  the  securities  in 
             clause 2 if applicable)                23,526,390             Options
              
              
              
 
 


 
+ See chapter 19 for defined terms. 
 
Appendix 3B Page 4                                                                       24/10/2005 
                                                                                               Appendix 3B 
                                                                                   New issue announcement 
 

 
 
                                              Number                                     +Class
    9     Number  and  +class  of  all  Not applicable                                   Not applicable
          +securities  not  quoted  on  ASX 

          (including  the  securities  in 
          clause 2 if applicable) 
           
           
           
           
    10    Dividend policy (in the case of a  Not applicable
          trust, distribution policy) on the 
          increased capital (interests) 
 
 
Part 2 - Bonus issue or pro rata issue
 
    11    Is  security  holder  approval  No
          required? 
           
           
    12    Is the issue renounceable or non‐ Renounceable
          renounceable? 
           
     
    13    Ratio  in  which  the  +securities  1 new share for every 3 shares held at the
          will be offered                     record date plus 1 option for every new
                                                                  share subscribed for
           
    14    +Class of  +securities to which the 
                                                                  Fully Paid Ordinary Shares
          offer relates 
           
    15    +Record  date  to  determine 
                                                                  7.00pm AEST on 10 August 2009
          entitlements 
           
    16    Will  holdings  on  different                           Not applicable
          registers  (or  subregisters)  be 
          aggregated       for    calculating 
          entitlements? 
           
    17    Policy  for  deciding  entitlements                     Fractional entitlements to new shares will
          in relation to fractions                                be rounded up to the nearest whole new
                                                                  share

           
    18    Names of countries in which the  All countries other than Australia and New
          entity  has  +security  holders  who  Zealand
          will  not  be  sent  new  issue 
          documents 
          Note:  Security  holders  must  be  told  how  their 
          entitlements are to be dealt with. 

          Cross reference: rule 7.7. 
           
 
+ See chapter 19 for defined terms. 
 
          A
24/10/2005  ppendix 3B Page 5 
Appendix 3B 
New issue announcement 
 

 
    19    Closing  date  for  receipt  of  5.00pm AEST on 26 August 2009
          acceptances or renunciations 
           




    20    Names of any underwriters           Patersons Securities Limited
           
           
           
    21    Amount  of  any  underwriting  fee  Patersons Securities Limited will receive a
          or commission                       management fee of $25,000 and an
                                                     underwriting fee equal to 5.5% of the
                                                     underwritten    amount   (approximately
                                                     $517,581)
           
    22    Names  of  any  brokers  to  the           Not applicable
          issue 
           
           
           
    23    Fee  or  commission  payable  to           Not applicable
          the  broker to the issue 
           
    24    Amount  of  any  handling  fee             Not applicable
          payable  to  brokers  who  lodge 
          acceptances  or  renunciations  on 
          behalf of +security holders 
           
    25    If  the  issue  is  contingent  on         Not applicable
          +security  holders’  approval,  the 

          date of the meeting 
           
    26    Date entitlement and acceptance            12 August 2009
          form  and  prospectus  or  Product 
          Disclosure Statement will be sent 
          to persons entitled 
           
    27    If  the  entity  has  issued  options,     Not applicable
          and  the  terms  entitle  option 
          holders  to  participate  on 
          exercise,  the  date  on  which 
          notices  will  be  sent  to  option 
          holders 
           
    28    Date  rights  trading  will  begin  (if    4 August 2009
          applicable) 
           
    29    Date  rights  trading  will  end  (if      19 August 2009
          applicable) 
           
           
           
           
           
           
 
+ See chapter 19 for defined terms. 
 
Appendix 3B Page 6                                                                    24/10/2005 
                                                                                                               Appendix 3B 
                                                                                                   New issue announcement 
 

 
    30     How  do  +security  holders  sell  Security holders should contact their
           their entitlements in full through  stockbroker and instruct them accordingly.
           a broker?                           Rights wishing to be sold must be dealt
                                                                   with by the close of trade on ASX on 19
                                                                   August 2009.
            
    31     How  do  +security  holders  sell                       Security holders should complete the
           part  of  their  entitlements                           Entitlement & Acceptance Form for those
           through  a  broker  and  accept  for                    rights to be accepted and forward it to the
           the balance?                                            share registry with the appropriate
                                                                   payment for the new shares. In addition,
                                                                   Security holders should contact their
                                                                   stockbroker and instruct them as to the
                                                                   balance of the rights to be sold on ASX.
                                                                   Those rights wishing to be sold must be
                                                                   dealt with by the close of trade on ASX on
                                                                   19 August 2009.
            
 
    32     How do +security holders dispose  Security holders should send a completed
           of  their  entitlements  (except  by  standard renunciation form (obtainable
           sale through a broker)?               from a stockbroker or from the share
                                                                   registry) together with the Entitlement &
                                                                   Acceptance Form and the appropriate
                                                                   payment for the new shares, to reach the
                                                                   share registry before 5.00pm AEST on 26
                                                                   August 2009.

            
    33     +Despatch date 
                                                                   3 September 2009
            
            
 
 
Part 3 - Quotation of securities
You need only complete this section if you are applying for quotation of securities 
 
    34     Type of securities  
           (tick one) 
            
    (a)           Securities described in Part 1 
                 
                   
 
    (b)             All other securities 
                 
                     Example:  restricted  securities  at  the  end  of  the  escrowed  period,  partly  paid  securities  that  become  fully  paid, 
                    employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible 
                    securities 




 
+ See chapter 19 for defined terms. 
 
          A
24/10/2005  ppendix 3B Page 7 
Appendix 3B 
New issue announcement 
 

 
Entities that have ticked box 34(a)
 
Additional securities forming a new class of securities 
 
Tick to indicate you are providing the information or               
documents 
 
    35           If the +securities are +equity securities, the names of the 20 largest holders of the 
                 additional  +securities,  and the  number and  percentage of additional  +securities 
                 held by those holders 
                  
    36           If the  +securities are  +equity securities, a distribution schedule of the additional 
                 +securities setting out the number of holders in the categories 

                 1 ‐ 1,000 
                 1,001 ‐ 5,000 
                 5,001 ‐ 10,000 
                 10,001 ‐ 100,000 
                 100,001 and over 
                  
    37           A copy of any trust deed for the additional +securities 
 
Entities that have ticked box 34(b)

    38    Number  of  securities  for  which   
          +quotation is sought 

           
           
                                                      
    39    Class  of  +securities  for  which          
          quotation is sought 
           
                                                      
    40    Do the  +securities rank equally in         
          all  respects  from  the  date  of 
          allotment  with  an  existing  +class 
          of quoted +securities? 
           
          If the additional securities do not 
          rank equally, please state: 
          • the date from which they do 
          • the  extent  to  which  they 
              participate  for  the  next 
              dividend,  (in  the  case  of  a 
              trust,  distribution)  or  interest 
              payment 
          • the  extent  to  which  they  do 
              not rank equally, other than in 
              relation  to  the  next  dividend, 
              distribution       or      interest 
              payment 
                                                      



 
+ See chapter 19 for defined terms. 
 
Appendix 3B Page 8                                                                          24/10/2005 
                                                                                                    Appendix 3B 
                                                                                        New issue announcement 
 

 
    41    Reason  for  request  for  quotation   
          now  
          Example: In the case of restricted securities, end 
          of restriction period 
           
          (if  issued  upon  conversion  of 
          another  security,  clearly  identify 
          that other security) 

                                                  
                                                 Number                                          +Class 

    42    Number  and  +class  of  all                                                            
          +securities    quoted  on  ASX 
          (including  the  securities in clause 
          38)  
           
           
           
 
 


 
Quotation agreement 
 
1     +Quotation of our additional  +securities is in ASX’s absolute discretion.  ASX 

      may quote the +securities on any conditions it decides.   
 
2     We warrant the following to ASX. 
 
      •      The issue of the  +securities to be quoted complies with the law and is 
             not for an illegal purpose. 
 
      •      There  is  no  reason  why  those  +securities  should  not  be  granted 
             +quotation. 

 
      •      An  offer  of  the  +securities  for  sale  within  12  months  after  their  issue 
             will not require disclosure under section 707(3) or section 1012C(6) of 
             the Corporations Act.   
                      Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be 

                      able to give this warranty 


          •            Section 724 or section 1016E of the Corporations Act does not apply to 

                       any  applications  received  by  us  in  relation  to  any  +securities  to  be 

                       quoted  and  that  no‐one  has  any  right  to  return  any  +securities  to  be 

                       quoted under sections 737, 738 or 1016F of the Corporations Act at the 

                       time that we request that the +securities be quoted. 
 
+ See chapter 19 for defined terms. 
 
          A
24/10/2005  ppendix 3B Page 9 
Appendix 3B 
New issue announcement 
 

 
          
         •         If we are a trust, we warrant that no person has the right to return the 
                   +securities to be quoted under section 1019B of the Corporations Act at 

                   the time that we request that the +securities be quoted. 

3        We will indemnify ASX to the fullest extent permitted by law in respect of any 
         claim,  action  or  expense  arising  from  or  connected  with  any  breach  of  the 
         warranties in this agreement. 
 
4        We  give  ASX  the  information  and  documents  required  by  this  form.    If  any 
         information  or  document  not  available  now,  will  give  it  to  ASX  before 
         +quotation of the  +securities begins.  We acknowledge that ASX is relying on 

         the information and documents.  We warrant that they are (will be) true and 
         complete. 
 




                                                              
Sign here:            ............................................................ Date: .30 July 2009. 
                      (Company Secretary) 
 
 
Print name:           Mark Licciardo 
 
                                               == == == == == 
 




 
+ See chapter 19 for defined terms. 
 
Appendix 3B Page 10                                                                                        24/10/2005 

				
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Description: 1 for 3 Renounceable Rights Issue to raise $94m Fully Underwritten