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The National Stock Exchange has finally allowed JSW Ispat Steel an “in principle” approval to a proposal for allotment of shares to its lenders.
JSW Ispat, in a note to the accounts for the quarter to March 31, said the approval from NSE was received on May 3, over a year later than the BSE.
According to the company, now controlled by OP Jindal Group, the CDR Empowered Group had permitted in January last year to allot 10.24 crore shares of Rs 10 each at a premium of Rs 4.74 a share to the lenders. The stock today closed at Rs 10.08 on the BSE.
Under the listing agreement [Clause 24(a)], stock exchange's permission is required for such an action by a listed company.
The JSW Ispat board's March 11 proposal for the allotment of shares was allowed by the BSE in May last year.
However, in absence of NSE's nod, allotment of shares could not take place.
The company exited the CDR mechanism with effect from September 30, 2011 after “payment of entire outstanding debt.”
JSW Ispat Steel Ltd made a loss of Rs 141.29 crore in March quarter (against a profit of Rs 70.42 crore in March quarter 2011) . The company said owing to “technical difficulties” in blast furnace operation and liability on account of customs duty and interest on import of power plant by a wholly-owned subsidiary, the net loss could not avoided.
Meanwhile, the company got a relief of Rs 38.09 crore on account of overcharging of gas tariff charged by the supplier for its Dolvi sponge iron plant.
The Petroleum and Natural Gas Regulatory Board on March 12 determined lower provisional tariff for transportation of natural gas with effect from November 20, 2008. “Consequently, the company has been allowed credit of Rs 38.29 crore by the supplier towards refund of excess tariff charged earlier, which has been adjusted with cost of natural gas during the quarter,” the company said.
jayanta_mallick
@thehindu.co.in
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