Tata Metaliks today said its board has approved an issue of preference shares worth Rs 100 crore to its promoter Tata Steel.
"The board of the company at its meeting held today, approved issue of one crore cumulative redeemable preference shares of Rs 100 each aggregating to Rs 100 crore to Tata Steel on preferential basis," the company said in a filing to the Bombay Stock Exchange (BSE).
The preference shares, to be alloted to Tata Steel, will carry a coupon rate of 8.5% and are redeemable after 3 years from the date of allotment, it added.
As on December 31, 2011, Tata Steel holds 46.66% stake in Tata Metaliks, which is into pig iron manufacturing.
Shares of Tata Metaliks closed today at Rs 67.55 apiece on the BSE, down 2.31% from the previous close.
