The promoters of Ispat Industries are planning to increase their stake to 51% over the next one year, according to Anil Sureka, director, Ispat Industries.
Surekha was speaking on the sidelines of the company’s EGM to approve allotment of equity warrants on a preferential basis to the promoters. Each warrant has been priced at Rs 43.89, and the total consideration works out to Rs 509 crore.
Post-issue, the promoters’ stake in the company would stand at 47.43% from the pre-issue shareholding of 42.44%. It is not known how the promoters plan to increase their holding to 51%.
The holders of the warrants would have an option to be allotted one equity share of the company for each warrant held any time after the date of allotment but on or before the expiry of 18 months from the date of allotment.
The funds being raised would be utilised to part finance various projects and backward integration, namely capacity expansion of the existing hot rolled coil plant from three million tonne to 3.6 million tonne, coke oven and pellet plants. The total cost of expansion would be around Rs 2,300 crore.
No comments:
Post a Comment