Southern Iron Board to consider conversion of loan into shares

Southern Iron & Steel Company Ltd has informed BSE that out of Optionally Convertible Loan of Rs 395.37 crores received from Banks / Financial Institutions, the Company had already converted Rs 158.93 crores and allotted 256,34,608 equity shares of face value of Rs 10 each at a premium of Rs 52 each per share on April 01, 2007, as per Master Restructuring Agreement dated July 11, 2005.

Further the Company has informed that, a meeting of the Board of Directors of the Company will be held on June 11, 2007 to consider the following.

Conversion of balance Optionally Convertible Loan

1. into equity at a premium of Rs 52 each (or)

2. into 10% Cumulative Convertible Preference Shares of Rs 1 each with an option to convert into equity as per the terms and conditions to be discussed and decided by the board of directors.

The stock closed the day at Rs.28.90, down by Rs.0.25 or 0.86%. The total traded quantity was 823350 compared to 2 week average of 854036. The stock hit an intraday high of Rs.29.60 and low of Rs.28.70.

Source : Equity Bulls

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