Tata Steel approves Preferential Allotment of shares, warrants

Tata Steel Ltd has announced that at the meeting of Committee of Board of Directors of the Company ("Committee") held on May 27, 2010, the Committee has approved, subject to the approval of the members of the Company pursuant to Section 192A of the Companies Act, 1956, an issue of up to 1,50,00,000 - Equity shares ("Ordinary Shares") of face value Rs. 10 each; and up to 1,20,00,000 - Warrants with a right exercisable by the warrant holder to subscribe for one Ordinary Share per warrant to the Promoter of the Company i.e. Tata Sons Ltd. on a preferential basis, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (ICDR Regulations) and on such other terms and conditions as the Board/Committee may in its absolute discretion decide The proposed issue will be made at a price to be determined as per the applicable ICDR Regulations.

The stock closed the day at Rs.493, up by Rs.8.55 or 1.76%. The stock hit an intraday high of Rs.497.50 and low of Rs.473.40.

The total traded quantity was 4240755 compared to 2 week average of 3153391.

Source : Equity Bulls

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