Sagar Cements Ltd has informed BSE that the Board of Directors of the Company at its meeting held on June 23, 2008, inter alia, has taken the following decisions:

1. To implement a green field cement plant of 5.5 million ton capacity in Gulbarga District in Karnataka through a Special Purpose Vehicle to be jointly promoted with M/s. Vicat S.A., France.

2. To mobilize a sum of Rs 70 crores through issue of 10,00,000 equity shares of Rs 10/- each at a premium of Rs 690/- per share on a preferential basis to M/s. Vicat S.A., France, its affiliates and subsidiaries. This is subject to necessary statutory and regulatory approvals. To seek the approval of the shareholders under Section 81(1A) of the Companies Act, 1956 for this preferential issue, an Extra-ordinary General Meeting of the Company is being convened to be held on July 23, 2008.