JSW Steel redeems preference shares

JSW Steel Ltd has announced that pursuant to the Scheme of Amalgamation of Southern Iron and Steel Company Ltd. (SISCOL) with JSW Steel Ltd. (JSWSL) and their respective Shareholders & Creditors (the "Scheme") sanctioned by the Hon'ble Bombay High court vide its order dated February 22, 2008, the Company had allotted 99,00,000, 11% Cumulative Redeemable Preference Shares of Rs. 10 each (11% CRPS) aggregating to Rs. 9,90,00,000/- on March 28, 2008 in lieu of the 11% CRPS of the erstwhile SISCOL.

These Shares are redeemable from the 3rd to the 5th year of their allotment in SISCOL (7th March 2007), at a premium of 10% along with dividend accrued upto the date of redemption. JSWSL's liability to these Preference Shareholders shall stand extinguished from the date of dispatch of the cheques/pay order for the redemption amount along with dividend.

Further the Company has informed that, the Board of Directors has by means of a Circular resolution passed on February 17, 2010, accorded its consent for the redemption of the aforesaid 99,00,000, 11% CRPS of Rs. 10 each, aggregating to Rs. 9,90,00,000/-, at a premium of Re. 1 per share (10%), on March 08, 2010, out of the profits of the Company alongwith Dividend for the Current year at the stipulated rate of 11% per annum upto the date of redemption.

The stock was trading at Rs.1061.30, up by Rs.39.40 or 3.86%. The stock hit an intraday high of Rs.1074.70 and low of Rs.1027.90.

The total traded quantity was 302526 compared to 2 week average of 486934.

Source : Equity Bulls

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