Business Daily from THE HINDU group of publications
Sunday, Mar 30, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Sunday, Mar 30, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Preferential Allotments Ispat Ind nod for Rs 509-cr preferential allotment Our Bureau Kolkata, March 29 Shareholders of Ispat Industries Ltd on Saturday approved the issue of convertible warrants to the tune of Rs 509 crore to promoters of the company. Proceeds received would be used to part-fund the company’s capital investment plans that have been pegged at Rs 2,292 crore. Shareholders approved the resolution to this effect at an extraordinary general meeting held here today. They approved the preferential allotment of 11.6 crore warrants — each convertible into one equity share any anytime after the date of allotment, but on or before the expiry of 18 months from the date of allotment — to the promoters of the company at a price of Rs 43.89 per warrant. Capacity expansionThe amount generated from the preferential allotment will be used to part-fund investment plans that include setting up of a one-million-tonne per annum (mtpa) capacity coke oven plant, a pellet plant of the annual capacity of 4.5 mt and enhancing capacity of the existing hot rolled coil plant from three mtpa to 3.6 mtpa. Speaking on the occasion, senior company officials said the coke oven plant would be set up in joint venture with a trading partner of the company at an investment of Rs 925 crore. Ispat’s contribution to the equity of the proposed joint venture company would be around Rs 100 crore. The balance amount – excluding the promoters’ contribution — required for setting up the pellet plant and enhancement of capacity of the hot rolled coil plant would be raised by way of a rights issue or issue of foreign currency convertible bonds (FCCBs). The implementation time of all the projects has been pegged at between 12 and 24 months from now. The officials said the company had been granted a licence for prospecting iron ore mines in Maharashtra. More Stories on : Preferential Allotments | Steel
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