O.P. Jindal Group-controlled JSW Ispat Steel Ltd, has allotted 13 crore equity shares of Rs 10 each of the company, on preferential basis, at a premium of Rs 4.74 a share, to its CDR (corporate debt restructuring) lenders. The lenders include ICICI Bank, IFCI, IDBI Bank, Oriental Insurance, LIC, GIC, Punjab National Bank and Bank of India.

This overdue measure had been taken after the National Stock Exchange on May 3 gave the company an “in principle” approval for allotment of the shares to the lenders.

The allotment to the lenders became necessary as they opted to convert “a part of the outstanding working capital term loan/ funded interest term loan/rupee term loan into equity shares, in terms of the approval granted by CDR Empowered Group,” the company said to the stock exchanges in a disclosure.

The Securities Issue Committee of board of directors of the company, at its meeting held on May 18, took the decision for allotment, JSW Ispat said.

Under the listing agreement, 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.

Exits CDR

The company, meanwhile, said that it exited the CDR mechanism with effect from September 30, 2011, after “payment of entire outstanding debt.”

As a measure of consolidation of operations under the O.P. Jindal Group fold, the company is relocating its registered office from Kolkata to Mumbai. Originally promoted by city-based Mittals, the company's manufacturing activities are located in Maharashtra. It also shifted its office from Belapur, Navi Mumbai to Lower Parel in Mumbai from February 24.

The stock is currently ruling a shade above its face vale of Rs 10. On Tuesday it finished at Rs 10.10 on the BSE.

jayanta_mallick@thehindu.co.in

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