Steel Strips Wheels to issue OCBs to raise Rs 20 Crores

Steel Strips Wheels Ltd has announced that the Board of Directors of the Company at its meeting held on June 03, 2008, had approved the proposal for the issue of Optionally Convertible Bonds (OCBs) amounting to Rs 200.00 Million to Tata Capital Ltd (TCL), by way of preferential issue on private placement basis, subject to the approval of shareholders and other regulatory authorities & compliance of other formalities.

50% of the OCBs i.e. Rs 100.00 Million will be converted into equity at the option of Steel Strips Wheels Ltd and the remaining 50% will be converted into equity only at the option of TCL, within a period of 18 months from the date of allotment of OCBs.

The conversion price will be determined at the time of conversion as per the SEBI Guidelines or 12 Price Earning (Earnings to be taken as per the annualized six monthly audited financials, if conversion is prior to March 2009 or as per the audited financials of March 2009 if conversion is in Financial Year 2009-10) whichever is higher. The relevant date for the conversion price shall be a date 30 days prior to the date on which the holder of OCBs become entitled to apply for the said shares.

The stock was trading at Rs.144.95, up by Rs.2.25 or 1.58%. The stock hit an intraday high of Rs.148 and low of Rs.144.

The total traded quantity was 1280 compared to 2 week average of 1059.

Source : Equity Bulls

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