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Mumbai, Oct. 8 Tata Steel Ltd will issue to its shareholders on a ‘rights’ basis equity shares in the ratio of one for every five at a price of Rs 300 per share (face value of Rs 10 each and a premium of Rs 290 per share) the company said in a statement to the stock exchange. It will additionally issue on ‘rights’ basis nine cumulative convertible preference shares (CCPS) of Rs 100 each for every 10 shares held. Six of these instruments will be compulsorily converted into one equity share of Rs 10 each on September 1, 2009.

The company has indicated that the exact conversion price would be decided later but will be in the range of Rs 500 to Rs 600 per equity share. The remaining three CCPS will be consolidated and converted into shares, sold in the market and the proceeds distributed to shareholders.

The company said it will be raising approximately Rs 6,000 crore from CCPS and Rs 3,654 crore from the rights issue. Tata Steel also informed BSE that November 5, 2007 had been fixed as the Record Date to determine the shareholders entitled to receive the rights offer.

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