Tata Steel AGM increases borrowing power, announces Rs.13 dividend

Tata Steel Ltd has announced that the members at the 99th Annual General Meeting (AGM) of the Company held on July 05, 2006, inter alia, have approved the declaration of dividend of Rs 13/- per share on ordinary shares of Rs 10/- each in respect of the period of 12 months ended March 31, 2006.

Increase in the Authorised Share Capital of the Company from Rs 850,00,00,000 divided into 600,000,000 ordinary shares of Rs 10 each and 25,000,000 Cumulative Redeemable Preference Shares of Rs 100 each to Rs 2000,00,00,000 divided into 1750,000,000 ordinary shares of Rs 10 each and 25,000,000 Cumulative Redeemable Preference Shares of Rs 100 each by creation of 1150,000,000 ordinary shares of Rs 10 each and consequential amendments in the Memorandum of Association of the Company.

Alteration in the Articles of Association of the Company.

Authority to the Board to create, issue, offer and allot, (including with provisions for reservation on firm and/or competitive basis, of such part of issue and for such categories of persons including employees of the Company as may be permitted), in the course of one or more public or private offerings in domestic and/or one or more international market(s), with or without a green shoe option, Ordinary Shares and/or Ordinary Shares through depository receipts and/or convertible bonds and/or other securities convertible into Ordinary Shares at the option of the Company and/or the holder(s) of such securities, and/or securities linked to Ordinary Shares and/or securities with or without detachable/non-detachable warrants and/or Warrants with a right exercisable by the warrant holder to subscribe for the Ordinary Shares and/or warrants with an option exercisable by the warrant-holder to subscribe for Ordinary Shares and/or any instruments or securities representing either Ordinary Shares and/or convertible securities linked to Ordinary Shares , including the issue and allotment of Ordinary Shares pursuant to a Green Shoe Option, if any, (Securities); provided that the total amount raised through the issuance of such Securities does not exceed Rs 6,500 crores, or its equivalent in one or more currencies, including premium if any, subject to the necessary provisions & approvals.

Authority to the Board for borrowing from time to time any sum or sums of monies which together with the monies already borrowed by the Company (apart from temporary loans obtained or to be obtained from the Company’s bankers in the ordinary course of business) may exceed the aggregate of the paid up capital of the Company and its free reserves, that is to say, reserves not set apart for any specific purpose, provided that the total amount so borrowed by the Board shall not at any time exceed the limit of limit Rs 20,000 crores, subject to necessary provisions & approvals.

15. Authority to the Board to create such charges, mortgages and hypothecations in addition to the existing charges, mortgages and hypothecations created by the Company, on such movable and immovable properties, both present and future, and in such manner as the Board may deem fit, together with power to take over the management and concern of the Company in certain events in favour of Banks / Financial Institutions, other investing agencies and trustees for the holders of debentures / bonds / other instruments to secure rupee / foreign currency loans and / or the issue of debentures whether partly / fully convertible or non-convertible and / or securities linked to Ordinary shares and / or rupee / foreign currency convertible bonds and / or bonds with share warrants attached (Loans) provided that the total amount of loans together with interest thereon, additional interest, compound interest, liquidated damages, commitment charges, premia on pre-payment or on redemption, costs, charges, expenses and all other moneys payable by the Company in respect of the said Loans, shall not, at any time exceed the limit of Rs 20,000 crores, subject to necessary provisions & approvals.

Source : Equity Bulls

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