Modern Dairies To Place 46.5 lakh shares with IFC Washington at Rs 6

The Rs 400 crore Modern Dairies is to receive Equity plus Debt Funding to the
tune of Rs 60 crore from International Finance Corporation-Washington.

Modern Dairies Ltd (BSE 519287) has informed BSE that the Board of Directors
of the Company at its meeting held on May 28, 2008, inter alia, has transacted
the following:

1. The Board was appraised of the decision of the Company to expand its milk
processing capacity ("Project") and in this regard was informed that
International Finance Corporation -Washington (IFC-W) has expressed an interest
in providing a loan in the amount of upto US$ 8.5 Million and subscribing to
46,50,000 Equity Shares of the Company on a preferential basis, for purposes of
the said Project subject to IFC securing the approval of IFC's management and
Board of Directors and execution of final documentation in form and substance
satisfactory to IFC.

2. The Board has considered the above financial package proposed by IFC(W) and
accordingly decided

(i) to obtain the approval of the members of the Company at the Forthcoming
Extraordinary General Meeting (EGM) in respect of preferential issue of
46,50,000 Equity Shares on private placement basis to International Finance
Corporation -Washington (IFC-W ) in terms of section 81 (1A) of the Companies
Act, 1956 ("the Act") at a price of Rs 60 per equity share of the Company, price
being not less than the price determined as of the Relevant Date (i.e. May 24,
2008) in accordance with Chapter XIII of SEBI (DIP) Guidelines 2000 for
preferential issues, subject to IFC(W) securing the approval of its management
and Board of Directors; and

(ii) To obtain the approval of the Shareholders in terms of Section 293 (1) (d)
of the Act to borrow moneys upto an extent of Rs 200 crores including by
availing External Commercial Borrowings (ECB) upto an amount of US$ 8.50 Million
from International Finance Corporation -Washington (IFC-W).

3. An Extraordinary General Meeting of the Shareholders of the Company has been
fixed on June 23, 2008.


Nothing in this article is, or should be construed as, investment advice.

Rohit