Investment & Precision Castings Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 29, 2008, inter alia, has transacted the following:

1. The Board of Directors have recommended payment of Dividend @ Rs 2.00 per equity
share (20%) for the Financial Year 2007-2008.

2. With the objective of unlocking shareholder value, it was decided to evaluate strategies for restructuring the investment by Investment & Precision Castings Ltd in its Wholly Owned Subsidiary, Tamboli Castings Ltd.

After considering various strategies, the Board of the Directors of the Company have decided to demerge the undertaking involving the investment business of the Company, including the investment either by way of debt or equity in Tamboli Castings Ltd to another company - Tamboli Capital Ltd, also a Wholly Owned Subsidiary of the Company.

The salient features of the Scheme of Arrangement under section 391 to 394 of the Companies Act are as under:

The Company investment business has various assets including investments by way of equity and debt in its 100% owned subsidiary Tamboli Castings Ltd. Tamboli Castings Ltd is a 100% Export Oriented Undertaking engaged in the manufacturing of Castings. These assets net of liabilities and debts if any will be demerged into Tamboli Capital Ltd. Under the proposed scheme under Section 391 to 394 of the Companies Act, Tamboli Capital Ltd will allot equity shares of Rs 10/- each to the shareholders of IPCL as on the Record Date (to be decided by the Board of Directors in consultation with The Bombay Stock Exchange Ltd) against the book value of assets acquired by virtue of the Demerged Undertaking from IPCL. The shareholders will not be required to make any payment against this allotment. It is proposed in the Scheme to list the shares of Tamboli Capital Ltd in the Bombay Stock Exchange Ltd, subject to the required approvals. As per the Scheme, for every 1 shares held in IPCL, as on the Record Date, 2 equity shares of Tamboli Capital Ltd will be allotted.

A scheme of arrangement under the Companies Act, 1956, between the Company and Tamboli Capital Ltd subject to the approval of stock exchange and other appropriate authorities will be filed in the High Court of judicature of Gujarat at Ahmedabad.