Jindal Stainless Board approves allotment of equity warrants to promoters

Jindal Stainless Ltd has announced that the Board of Directors of the Company at its meeting held on September 23, 2006, inter alia has taken the following decisions:

1. Approved preferential allotment of equity warrants to promoter group on the following terms and conditions, subject to the approval of the members in the extra ordinary general meeting to be convened on October 20, 2006 for the purpose:

a. Number of warrants: 21,500,000 warrants; 16.36% of the existing, paid-up equity capital of the company.

b. Terms of Conversion:

i. Each warrant is convertible into one equity shares of face value of Rs 2 each at price to be determined as per SEBI guidelines.

ii. 21,500,000 warrants are convertible into equity shares on or before the expiry of 18 months from the date of allotment.

c. Conversion price: To be as per SEBI Guidelines on relevant date.

d. Objects of the issue: The proceeds of these warrants convertible into equity shares of the company would be utilized towards financing of long term corporate funds.

e. Proposed Allottees:

i. Sh. Ratan Jindal

ii. Jindal Overseas Holding Ltd

The shareholding of 40.31% held by promoter as on August 26, 2006 will increase to 48.70% on conversion of 2l,500,000 warrants on or before the expiry of 18 months from the date of allotment.

2. Authorized Sh. Ratan Jindal, Vice Chairman & Managing Director and Sh. V S Jain, Managing Director & CEO, individually and severally to appoint a consultant to advise on hiving off of any division of the company including thermal power plant at Orissa, to increase shareholders value.

Source : Equity Bulls

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