Jindal Stainless Ltd approves preferential allotment of equity shares, CCCPS

The Board of Directors of Jindal Stainless Ltd on February 25, 2014, has approved the preferential allotment by way of resolutions through circulation.

Subject to approval of Shareholders, the board approved proposal to make a Preferential Allotment of Equity Shares and Cumulative Compulsory Convertible Preference Shares (CCCPS) to "JSL Overseas Limited", a promoter group entity, on or before March 31, 2014.

The issue will comprise of 1,07,50,000 Equity Shares of the Company of face value of Rs. 2 each at a price of Rs. 37.65 per Equity Share [including a premium of Rs. 35.65] for an aggregate amount of Rs. 40,47,37,500 and 1,58,10,440 CCCPS of the Company of face value of Rs. 2 each at a price of Rs. 37.65 per CCCPS [including a premium of Rs. 35.65] for an aggregate amount of Rs. 59,52,63,066.

The CCCPS will compulsorily get converted into equity shares of the Company within 18 months from the date of allotment.

Subject to approval of Shareholders, alteration in the Capital Clause of the Memorandum of Association of the Company by cancelling 3,00,00,000 Equity Shares of Rs. 2 each, remaining un-issued and which have not been taken or agreed to be taken by any person and by creating 3,00,00,000 Cumulative Compulsory Convertible Preference Shares ("CCCPS") of Rs. 2 each in the Authorised Share Capital.

The Board also approved notice for convening the Extraordinary General Meeting of Shareholders of the Company on March 26, 2014 for seeking their approval.

Shares of JINDAL STAINLESS LTD. was last trading in BSE at Rs.33.55 as compared to the previous close of Rs. 33. The total number of shares traded during the day was 33626 in over 570 trades.

The stock hit an intraday high of Rs. 36 and intraday low of 32.9. The net turnover during the day was Rs. 1148299.

Source : Equity Bulls

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