Weizmann Limited's two demerged entities - Weizmann Forex Ltd. and Karma Energy Ltd. to list on the stock exchanges on June 28

Weizmann Group, a Rs. 3,500 crore diversified conglomerate having interests in money changing and Western Union Money Transfer business, renewable power, and textile processing and exports, will list two demerged entities from its flagship company, Weizmann Limited - namely Weizmann Forex Limited (WFL) and Karma Energy Limited (KEL), on the BSE and NSE on Tuesday, June 28, 2011.

Mumbai, Maharashtra, June 25, 2011 /India PRwire/ -- Weizmann Group, a Rs. 3,500 crore diversified conglomerate having interests in money changing and Western Union Money Transfer business, renewable power, and textile processing and exports, will list two demerged entities from its flagship company, Weizmann Limited - namely Weizmann Forex Limited (WFL) and Karma Energy Limited (KEL), on the BSE and NSE on Tuesday, June 28, 2011.

Weizmann Limited, which completed its Silver Jubilee in 2010, underwent a capital and business restructuring exercise. Pursuant to the approved Scheme of Arrangement of the Company, Weizmann Forex Limited and Karma Energy Limited allotted 1,15,14,357 equity shares each to shareholders of Weizmann Limited in the ratio of 2 (two) equity shares of Rs. 10 each of respective companies for every 3 (three) equity shares of Rs. 10 each held in Weizmann Limited.

Mr. Chetan Mehra, Managing Director, Weizmann Limited, said, "This exercise will unlock value for our shareholders and will also enable the Group to have a focused approach in its businesses. Both these businesses have a tremendous growth potential, given the exciting prospects of the Indian economy. Weizmann has already established a strong presence in these areas and we are extremely optimistic that culmination of the restructuring exercise would create focus and propel growth."

The objective of the restructuring exercise was: a) Creation of separate legal entities focusing on primary business segments of the Group viz., Forex business, power business and textile processing and exports; b) Unlocking the values of the demerged undertakings by issuing equity shares to the equity shareholders of the applicant company by the two unlisted resultant companies; c) It is believed that the proposed segregation will create enhanced value for shareholders and allow a focused strategy in operations, which would be in the best interest of shareholders and all stakeholders; d) The demerger will also provide scope for independent collaboration and expansion without committing the existing organization in its entirety.

Weizmann Forex Ltd. (BSE -533452, WEIZMANFX; NSE - WEIZFOREX), is a leading player in the fast growing money changing business and one of the top players in Western Union money transfer business and Karma Energy Ltd. (BSE - 53345 KARMAENRG; NSE - KARMAENG) is an independent power producer in the renewable energy space.

Notes to Editor

About Weizmann Forex Limited

Weizmann Forex Limited (WFL) is an Authorized Dealer Category II (AD-II) licensed by RBI and is also one of the Principal Representatives of Western Union Financial Services USA approved by RBI. The company is by far the largest representative of Western Union (a global market leader in the money transfer trade) in terms of Network size and the Money Transfer activities are carried out through over 32,500 franchisee locations. WFL has over 400 plus branches Pan India managed by over 1,800 dedicated professionals. The company is also leveraging on its wide reach by diversifying into travel, insurance and mobile top up related activities.

The tie up for money transfer are spread over entities all over the country and they include leading Public and Private Sector Banks viz. Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Dhanlakshmi Bank, Federal Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Oriental Bank of Commerce, South Indian Bank, UCO Bank, Bharat Co-operative Bank, Nainital Bank, North Malabar Gramin Bank, The Lakshmi Vilas Bank, Pallavan Grama Bank, Cosmos Co-op Bank. Other entities include Stock Holding Corporation, BPCL Outlets, Centrum Direct, Muthdoot Finance, Mannapuram Finance & Leasing, etc

The AD-II license permits WFL to release foreign exchange for non trade related current account transactions like Overseas Education; Release of foreign exchange to patients traveling abroad for availing medical treatment; Indians opting to migrate to other countries; Release of foreign exchange for film shoots at overseas locations; Payment of wages to crew of foreign sea liners; Issuance of Foreign Currency Demand Drafts for non trade related miscellaneous purposes as permitted by RBI. The Company has received a number of rewards for its consistent performance under various categories from American Express and Western Union.

About Karma Energy Limited

Karma Energy Limited would be spearheading the growth of Weizmann Group in Renewable Energy Sector. Already about 40 MW wind farms are in operation in the states of Andhra Pradesh, Maharashtra and Tamil Nadu. The company along with SPVs and JVs in the Group are developing over 1000 MW wind energy projects spread over Gujarat, Karnataka, Maharashtra and Tamil Nadu. Over 15 MW Small Hydel Projects are under development in the State of Himachal Pradesh. The first project of 3.5 MW capacity is expected to be commissioned in the next couple of months.

The developed projects in the state of Maharashtra are already registered with UNFCCC and are eligible for CDM benefits. The new projects in Tamil Nadu and Hydel Project in Himachal Pradesh are in the process of being registered for CDM benefits. In selected projects the Group contemplates registering for Renewable Energy Certificate Trading and this could provide an opportunity to increase the revenue earnings. The Group also contemplates venturing into solar project. The Group has signed a MOU for a 600 MW Gas based project in Haryana with GAIL(India) Limited.

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