Tata Steel converts over worth Rs224cr warrants in Tata Metaliks to fund the latter's expansion project

With this, Tata Steel's shareholding in Tata Metaliks has increased to 60.03% from earlier 55.06%.

Sep 28, 2020 03:09 IST India Infoline News Service

An employee sits in a railway train cabin at the steel works operated by Tata Steel in Port Talbot. Bloomberg
Tata Steel has converted warrants held in Tata Metaliks into equity shares for funding the latter's expansion projects and also to strengthen the balance sheet. Both the companies belong under Tata Group.

According to the regulatory filing, Tata Steel exercised it's right towards the conversion of  34,92,500 Warrants into 34,92,500 equity shares having a face value of Rs10 each aggregating to Rs224.22cr.

Tata Steel made paid 25% of the amount on the application and the balance amount of Rs168.16cr paid on September 25, 2020. The warrants were exchanged at an issue price of Rs642 per Warrant.

The transaction was carried in cash.

With this, Tata Steel's shareholding in Tata Metaliks has increased to 60.03% from earlier 55.06%.

Tata Metaliks engaged in producing high-quality Pig Iron (PI) and Ductile Iron (DI) pipes, is a subsidiary and a company in the Tata Steel group.

On Sensex, Tata Steel stocks settled at Rs360.95 per piece higher by 2.57%. While Tata Metaliks finished at Rs525 per piece soaring 3.67%. 

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