Pennar Steel to split shares, raise funds

The shareholders of Pennar Steels will meet on January 27, 2005 in an extraordinary general meeting (EGM) to approve sub-division of shares and raise fresh funds from financial institutions.

According to a release issued to the BSE today, 50% of the face value of 1,66,49,119 shares of Rs 10 each will be converted into 0.01% cumulative redeemable preference shares of Rs 5 each.

"The preference shares will be redeemable at par in three annual installments from 2013-14 and ending in 2015-16 at the rate of Rs 1.66, Rs 1.67 and Rs 1.67, respectively, per share," the release said.

The face value of paid-up shares will thus stand reduced to Rs 5 each, the release said.

The meeting will also authorise the board of directors to offer up to 2.97 crore equity shares aggregating Rs 14.85 crore in one or more tranches to IDBI, ICICI Bank and IFCI by conversion of part of the funded interest term loans (FITL) in line with the scheme of reconstruction and arrangement as may be sanctioned by the High Court of Andhra Pradesh.

The meeting will also authorise the board to offer up to three crore shares totalling Rs 15 crore in one or more tranches to the promoters, the release added.