Promoters to up stake in Jindal Stainless to 49%
Ratan Jindal and Jindal Overseas Holding Ltd will increase their stake in Jindal Stainless Ltd by 8.39 per cent.
This will hike the promoters’ holding in the company to 48.7 per cent from the current 40.31 per cent in 18 months.
The board of directors of Jindal Stainless approved preferential allotment of 21.5 million equity warrants to the promoter group, subject to the approval of the members in the extraordinary general meeting to be convened on October 20, the company informed the Bombay Stock Exchange.
The 21.5 million warrants will equal 16.36 per cent of the existing paid-up equity capital of the company. Each warrant is convertible into one equity share at a face value of Rs 2 each at a price to be determined by Sebi guidelines at a relevant date in the future on or before the expiry of 18 months from the date of allotment.
“The cash will be brought by the promoters within 18 months.
The share price will be governed by Sebi guidelines and other relevant warrants.
The total amount during 18 months is expected to be Rs 221.45 crore,” said V S Jain, managing director and CEO, Jindal Stainless.
The proceeds of these warrants would be utilised towards financing of working capital requirements for projects in its existing unit in Hisar and the greenfield venture in Orissa.
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