The Board had earlier approved the issue of shares on a Right basis to the existing shareholders of the Company through two simultaneous but unlinked issues as under:

1. Equity Shares in the ratio of one Equity Share for every five Equity Shares held at a price of  Rs.300  per share (i.e. face value of Rs.10 each and  a premium of Rs.290 per share), raising an amount of Rs. 3,654 crores;  and

2. 2% Cumulative Convertible Preference Shares (CCPS) of Rs 100 each, compulsorily convertible into Equity Shares of Rs. 10 each, with an indicative conversion price in the range of Rs. 500 to Rs. 600 per Equity Share (on an ex- Rights basis), as may be decided by the Board or the Committee thereof, to enable the Company to raise a total amount of upto Rs 6,000 crores.

The Committee of Directors at its meeting held today approved as under:

1.  Size of CCPS to be offered on Rights basis:

The Company would issue CCPS of Rs. 5,481 crores in the ratio of 9:10 to the existing equity shareholders.

1. Conversion price of CCPS into Equity Share:

The six CCPS of the face value of Rs.100 each will be compulsorily and automatically converted into one Equity Share fully paid up of Rs.10 each at a premium of Rs. 590. 

1. Time of conversion:

The CCPS will be compulsorily and automatically converted into Equity Share fully paid      up on 1st September 2009 without any application or any further act on the part of the CCPS holders.  There shall be no redemption of the CCPS.  On conversion CCPS into Equity Shares, the Equity Share Capital would stand increased to 82.21 crores shares of Rs. 10 each.

Record Date:

In consultation with the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the Company has fixed Monday, November 5, 2007 as the Record Date to determine the shareholders entitled to receive the above Rights Offer.