Bethesda, Oct. 18, 2012 (GLOBE NEWSWIRE) -- India Globalization Capital, Inc. (NYSE MKT: IGC)(NYSE Amex: IGC), a company competing in the rapidly growingmaterials and infrastructure industry in India and China, announcedtoday that it has entered into a comprehensive agreement, pursuantto which TBL becomes a fully-owned subsidiary of IGC. Currently,IGC owns 76.87% of TBL. As a part of the consolidation effort to create managementefficiency and focus, IGC through one of its subsidiaries in India,is buying the remaining 23.13% of the TBL shares still owned by theother TBL shareholders. According to the Agreements, IGC willreceive from the Jortin Antony Group their 23.13% shareholding inTBL and other miscellaneous items as described in the twoAgreements filed today on Form 8-K. The Jortin Group will receivethe Vypin Land, a property that is in the name of TBL and pledgedas collateral to a bank in India, and about $200,000 (assuming 50INR to 1 USD) on receipt of the money from TBL's claim against theNational Highways Authority of India (NHAI). Both parties have agreed to a mutual release or indemnityagainst future legal actions. On receipt of the Vypin Land, theJortin Anthony Group also frees TBL of the liability associatedwith the bank. IGC's CEO, Mr. Ram Mukunda, said: "This is a great opportunityto fully acquire TBL which we believe has significant value.Currently, TBL has $3 million in filed claims and an estimated $6million in other unfiled claims. As we have said before, weexpect to realize a substantial award on the filed claim in thevery near future. TBL also has substantial operating assets whichwe are either redeploying in our mining operations or leasing outto third parties." About IGC: Based in Bethesda, Maryland, India Globalization Capital (IGC)is a materials and infrastructure company operating in India andChina. We currently supply Iron ore to Steel Companiesoperating in China. For more information about IGC, pleasevisit IGC's Web site at www.indiaglobalcap.com. For informationabout Ironman, please visit www.hfironman.com. Forward-looking Statements: Some of the statements contained in this press release that arenot historical facts constitute forward-looking statements underthe federal securities laws. Forward-looking statements canbe identified by the use of the words "may," "will," "should,""could," "expects," "post", "plans," "anticipates," "believes,""estimates," "predicts," "intends," "potential," "proposed,""confident" or "continue" or the negative of those terms. These forward-looking statements are based on the existing beliefs,assumptions, expectations, estimates, projections andunderstandings of the management of IGC concerning PRC Ironman withrespect to future events at the time these statements aremade. These statements are not a guarantee of futuredevelopments and are subject to risks, uncertainties and otherfactors, some of which are beyond IGC's control and are difficultto predict. Consequently, actual results may differmaterially from information contained in the forward-lookingstatements as a result of future changes or developments in ourbusiness, our competitive environment, infrastructure demands, Ironore availability and governmental, regulatory, political, economic,legal and social conditions in China.
Factors that could cause actual results to differ, relate to the(i) ability of IGC to successfully execute on contracts andbusiness plans, (ii) ability to raise capital and the structure ofsuch capital including the exercise of warrants, (iii) exchangerate changes between the U.S. dollar, the Chinese RMB and theIndian rupee, (iv) weather conditions in China and India, (v)uncertainties with respect to the People's Republic of China'slegal, regulatory and licensing environment, and (vi) ability ofthe Company to access ports on the coasts of India. Readersare cautioned not to place undue reliance on these forward-lookingstatements. The Company undertakes no obligation to publiclyupdate any forward-looking statements, whether as a result of newinformation, future events, or otherwise. Other factors andrisks that could cause or contribute to actual results differingmaterially from such forward-looking statements have been discussedin greater detail in IGC's Schedule 14A and Form 10-K for FYE 2012filed with the Securities and Exchange Commission on December 9,2011 and on July 16, 2012, respectively.
CONTACT: Investor Relations Contact: Mr. John Selvaraj 301-983-0998