Tata Steel To Mop Up Rs 9,654 Cr Via Rights Issue

Mumbai: Tata Steel Ltd will issue to its shareholders on rights basis equity shares in the ratio of one for every five at a price of Rs 300 per share (face value of Rs 10 each and a premium of Rs 290 per share). It will additionally issue on rights basis nine cumulative convertible preference shares (CCPS) of Rs 100 each for every 10 shares held. Six of these instruments will be obligatorily converted into one equity share of Rs 10 each on September 1, 2009. The company has pointed that the exact conversion price will be decided later but will be in the range of Rs 500 to Rs 600 per equity share. The company said it would be mopping up approximately Rs 6,000 crore from CCPS and Rs 3,654 crore from the rights issue. Tata Steel also informed BSE that November 5, 2007 had been fixed as the Record Date to determine the shareholders entitled to receive the rights offer.