JSW Steel allots 32004798 shares

JSW Steel Ltd has announced that the Share Allotment Committee Of Directors of the Company has in its meeting held on October 08, 2010, allotted 32,004,798 (Thirty Two Million Four Thousand Seven Hundred Ninety Eight) Equity Shares of the Company, of face value of Rs. 10/- each, fully paid up, to JFE Steel Corporation upon the mandatory and automatic conversion on October 07, 2010, of 1 (one) Fully and Compulsorily Convertible Debenture of face value of Rs. 48,007,197,458 ('FCD') held by it, in accordance with the terms and conditions of the FCD.

As per the conversion terms of the FCD, the FCD is automatically and mandatorily convertible into equity shares of face value of Rs. 10/- each of the Company at a conversion price of Rs. 1,500/- if any of the following Trigger Events occurs at any time after the issue of the FCD:

i. The average closing price of the Company's equity shares on the National Stock Exchange of India Ltd., in any period of two consecutive week or 10 (Ten) consecutive trading days reaches or exceeds Rs. 1,365 per Share;

ii. The closing price of the Company's equity shares on the National Stock Exchange of India Ltd. for a consecutive period of 5 trading days reaches or exceeds Rs. 1,365 per share on each such day.

The Trigger Event had occurred on October 07, 2010 ('Trigger Event Date'), as the closing price of equity shares on the National Stock Exchange of India Ltd for a consecutive period of 5 (Five) trading days upto and including the Trigger Event Date, had reached or exceeded Rs. 1,365 (Rupees One Thousand, Three Hundred and Sixty Five only) per equity share on each such day.

The 32,004,798 equity shares allotted as aforesaid rank pari passu in all respects with the existing equity shares of the Company.

Consequent to the aforesaid allotment, the paid-up equity share capital of the Company stands increased from Rs. 187,04,86,820/- to Rs. 219,05,34,800/- comprising of 21,90,53,480 equity shares of Rs. 10/- each.

The stock was trading at Rs.1328.60, down by Rs.42.55 or 3.10%. The stock hit an intraday high of Rs.1381 and low of Rs.1309.90.

The total traded quantity was 1.39 lakhs compared to 2 week average of 2.62 lakhs.

Source : Equity Bulls

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