Tata Sponge’s board approves date for right issues

The company’s board has given approval for issuance of 3.3cr equity shares of the face value of Rs10 each, on a rights basis

Jun 13, 2019 08:06 IST India Infoline News Service

Tata Sponge, in its filing to the exchanges informed that its board has granted approval of the issuance of equity shares by way of rights issue to the existing shareholders of the company as on the record date for an amount not exceeding Rs1,800cr and fixed record date for rights issue at June 25.

The company’s board has given approval for issuance of 3.3cr equity shares of the face value of Rs10 each, on a rights basis, not exceeding an amount of Rs1,650cr by the company to the eligible equity shareholders, the company said in a press note to the exchanges.

"In the ratio of 15 Rights Equity Shares that an eligible equity shareholder is entitled to in proportion to 7 equity shares held by such eligible equity shareholder on the record date," the company said in a press note.

The issue price will be Rs500 per Rights Equity Share (including a premium of Rs490 per Rights Equity Share, the company added.

Tata Sponge Iron Ltd's share price is currently rading at Rs722.90, up by Rs12.65 or 1.78%, from its previous close of Rs710.25 on the BSE.
The scrip opened at Rs714.70 and has touched a high and low of Rs734.80 and Rs692.95, respectively. So far, 1,77,668 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,093.79cr.

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