The Board of Directors of Videocon Industries Limited approved inprinciple issue of Global Depository Receipts and/or Equity Shares through Prospectus/Letter of Offer or Circular and/or by Private Placement on preferential basis and/or on Rights basis, and/or any combination of any or all these methods, for an amount not exceeding Rs. 2,000 crores (Rupees Two Thousand Crores only) including premium, if any at such time, price, manner and on such terms as the Board may, in its discretion deem fit and appropriate in one or more tranches.

The company has already initiated the process of amalgamation of Petrocon India Limited with Videocon Industries Limited, Consequent to proposed amalgamation, the Company expects further requirement of funds to support the consolidated activities.

Also, as a prudent policy, the company has plans to repay the high cost debts in the post amalgamation period.