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Mumbai, July 05, 2006
The shareholders of the company, today, approved the proposal to raise
long term funds in one or more tranches, in the form of such instruments as the Board of
Directors may approve. The above fund raising is in line with the company's growth plan to
build the Greenfield Projects and undertake strategic acquisitions.
Subsequent to the above approval, the Board of Directors of the company,
today afternoon, considered and approved the proposal to offer on a preferential basis,
the following securities to its main promoter, namely, Tata Sons, in accordance with the
provisions of Chapter XIII of the SEBI (Disclosure and Investor Protection) Guidelines,
2000 :-
2,70,00,000 Ordinary Shares of Rs.10 each at a price of Rs.516 per share
(which is as per the SEBI's pricing formula) involving an amount of Rs.1,393.20 crores.
2,85,00,000 Warrants, where each Warrant would entitle Tata Sons Limited
to subscribe to one Ordinary Share of the company against payment in cash. Tata Sons
Limited would be entitled to exercise the option after April 1, 2007 till January 2008,
but not later than 18 months from the date of issue of the Warrants. As per the SEBI DIP
Guidelines, 2000, an amount equivalent to 10% of the price fixed as above would be paid by
Tata Sons Limited on allotment of the Warrants. The price at which the Warrants will be
exercised will be determined in accordance with the SEBI prescribed pricing formula
applicable at that time.
The above allotments will be within the 5% annual limits prescribed by
SEBI for preferential allotment / creeping acquisitions. The allotment of Preferential
Shares and Warrants will be completed within the prescribed period.
The shareholders also approved the increase in the authorized equity
capital.
The company would continue to evaluate options to raise long term funds
based on its investment needs for its announced projects and acquisitions.
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