Tata Steel to raise additional long term funds

Tata Steel Ltd has informed that the members at the Annual General Meeting (AGM) of the Company held on July 05, 2006, inter alia, have approved raising of long term funds upto Rs 65,000/- million in one or more tranches, in the form of such instruments as the Board of Directors may approve. Subsequently, as part of the above fund raising, the Board of Directors of the company at its meeting held on July 05, 2006, has approved the proposal to offer on a preferential basis, the following securities to its main promoter, namely Tata Sons Ltd in accordance with the provisions of Chapter XIII of the SEBI (Disclosure and Investor Protection) Guidelines, 2000: 1. 2,70,00,000 Ordinary Shares of Rs l0/- each at a price of Rs 516/- per share (which is as per the SEBI s pricing formula) involving an amount of Rs 13,932/- million. 2. 2,85,00,000 Warrants, where each Warrant would entitle Tata Sons Ltd to subscribe to one Ordinary Share of the Company against payment in cash. Tata Sons would be entitled to exercise the option after April 01, 2007 but not later than 18 months from the date of issue of the Warrants. As per SEBI DIP Guidelines, 2000, an amount equivalent to 10% of the price fixed as above i.e., Rs 51.60/- per Warrant would be paid by Tata Sons Ltd on allotment of the Warrants. The price at which the Warrants will be exercised will be determined in accordance with the SEBI prescribed pricing formula applicable at that time. The above proposed allotments will be within the 5% annual limits prescribed by SEBI for preferential allotment / creeping acquisitions. The allotment of Preferential Shares and Warrants will be completed within the prescribed period.

Source : Equity Bulls

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