For the reorganisation of the capital of the Company, Ballarpur Industries is to provide for a stock split and a simultaneous buyback of 40% of the paid up capital of the Company. In addition, small shareholders holding 1000 equity shares or less, of the Company, prior to the stock split under the scheme, shall have the option to sell the shares in entirety.

Under the scheme, it is proposed that the Appointed Date be fixed as July 01, 2007. The Record Date for determining the shareholders of the Company as on a particular date is referenced to 30 days from the Effective Date of the Scheme. Within 45 days from the Effective Date, the Company shall undertake the stock split.

A single share of the Company shall be split into 5 shares of the face value of Rs 2 each. The non-split share has been valued at Rs 125 which is higher than the closing price of the shares of the Company on July 23, 2007. The 6 - months - average market price of equity shares and the 2 - weeks - average market price of equity shares from the Board meeting were Rs 114.33 and Rs 118.61 respectively on the National Stock Exchange of India Ltd. The buy back price for the share of the face value of Rs 2/- for purchasing 40% of the paid up capital to be bought has been fixed at Rs 25/- per share.

Simultaneous with the stock split, 40% of the post-split stock from the paid up capital of the Company, shall be subject to a buy back by the Company in accordance with the approved Scheme. Two shares of the face value of Rs 2, shall be bought back by the Company for the purchase price of Rs 50.

Both the stock split and the buyback shall be undertaken, only if the Scheme is approved and sanctioned by the High Court.