The members of Sathavahana Ispat in the extraordinary general meeting on 15 December 2010 have approved to issue 42,00,000 share warrants by private placement on preferential basis to Ganapati Adusumilli Fininvest Pvt Ltd, an associate concern of promoters group at issue price of Rs 60 (including premium of Rs 50) per share warrant with option to convert each share warrant by exchange / surrender for one equity share of Rs 10 at a future date, which upon full conversion to equity would account for 10.94% of expanded paid up capital of the company. The promoters' group holding will go up from the present 36.20% to 42.43% on the expanded capital of the company on the assumption that the share warrants will be fully subscribed and fully paid up on conversion into equity shares.

The members have approved to issue 8,00,000 equity shares to Stemcor AG, a body corporate incorporated out side India and an existing shareholder of the company by private placement on preferential allotment basis at issue price of Rs 60 (including premium of Rs 50) per equity share. Stemcor AG holding will go up from the existing 14.67% to 14.84% on the expanded capital of the company after the present preferential issue and on the assumption that the share warrants will be fully subscribed and fully paid up on conversion into equity shares.