MUMBAI: The board of directors of Crest Communication Ltd has approved the issue of 1.779 million convertible preference shares to the promoters of the company.

A company statement to The National Stock Exchange (NSE) says that the issue of preferential share capital is being made since the promoters' holding in the company got diluted after the allotment of underlying equity shares towards global depository receipts (GDRs).

In its meeting held on 31 January, the board agreed that the shares would be issued to the promoters in two tranches, the statement says.

The company is also looking to increase the aggregate foreign investment limit to 74 per cent of the equity capital of the company. The Crest Communication board also approved of an amendment in the Articles of Association of the company.

Senior officials of the company were not available for comment.

In an earlier meeting on 28 January, the company's board had approved an investment of $ 56.37 billion in the rights issue of Crest Communication Holdings Ltd Mauritius, a wholly owned subsidiary of the Company. This investment in 15,714 equity shares of $ 1 each will be made at a premium of $ 357.744 per equity share.

The company has convened an extraordinary general meeting on 5 March 2004 to get its shareholders' nod for the above matters.