Orissa Sponge to issue shares to IDFC

Orissa Sponge Iron & Steel Ltd has announced that the Board of Directors of the Company at its meeting held on October 08, 2007 has approved, subject to the shareholders' approval and other approvals as may be required, the issuance of the following securities of the Company on preferential basis in accordance with the SEBI (Disclosure & Investor Protection) Guidelines, 2000 ("SEBI Guidelines"):

1. Issuance of 40,00,000 equity shares of Rs 10 each equally to the following four entities:

(a) Infrastructure Development Finance Company Ltd;
(b) Quantum (M) Ltd;
(c) Bassana Investments Ltd; and
(d) Strepera Holdings Ltd.

2. Issuance of 40,00,000 warrants to TRFI Investment Pvt Ltd, a promoter group company, and 20,00,000 warrants to Prakausali Investments (India) Pvt Ltd, with each warrant carrying a right to subscribe to one fully paid-up equity share of Rs 10 in the equity capital of the Company.

The issuance of the aforesaid shares / warrants would enable the Company to raise funds to the tune of Rs 225 crores for meeting its requirement of long-term working capital and further expansion.

Further, the Board has also approved in the said meeting, subject to the requisite approvals, the Issuance of upto 50,00,000 equity shares and / or any other securities convertible into equivalent number of equity shares of Rs 10 each to such Person(s) as may be decided by the Board in accordance with applicable provisions of the SEBI Guidelines.

Source : Equity Bulls

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