New Delhi, Delhi, (Business Wire India) -- The Board of Directors Kajaria Ceramics Limited has approved to issue Preferential Warrants to the Promoters/ Promoter's Group.

The company proposes to Issue 1,27,00,000/- convertible warrants at Rs. 30 per warrant (as per SEBI guidelines)to the promoters. One warrant would entitle to apply for and obtain allotment of one equity share having face value of Rs. 2 each against one such warrant.

Out of 1,27,00,000 warrant upto 57,00,000 warrant are convertible on or before 31.3.2008 and balance 70,00,000 warrant are convertible after 31.3.2008 but before 18 months from the date of allotment.

The object of the proposed Issue is to improve the debt/equity ratio for leveraging to borrow funds for general corporate purpose including the future capex/working capital requirements of the company.

Kajaria Ceramics is the largest manufacturer of ceramic wall and floor tile in the country with a capacity of 26.4 million square meters per annum and is the only Ceramic Tile Company in the country conferred with "Super Brand" status.