Jindal Saw - Updates
Jindal Saw Ltd has informed BSE that the Company has identified various opportunities in niche infrastructure areas. In this connection, the Company has proposed three-fold business initiatives in Infrastructure, Transportation and Fabrication and firmed up plans to setup three distinct lines of business spanning Infrastructure (water transportation infrastructure and power generation), Transportation (inland & coastal waterways transportation and rail transportation) and Fabrication (shipbuilding and shipyards). With this objective in view, a Company namely, Jindal ITF Ltd. has been incorporated which shall be subsidiary of Jindal Saw Ltd. Jindal ITF Ltd has been established with the main objects to invest in the above infrastructure related businesses. These businesses will further be operated through separate Companies with equity investment to be made by Jindal ITF Ltd. To meet the equity investment requirements of these new businesses, it has been proposed to allot the warrants / CCDs on preferential basis under Guidelines for preferential issues as contained in Chapter XIII of the SEBI (Disclosure & Investor Protection) Guidelines, 2000. The Company proposes to issue app. 26,00,000 warrants and 27,30,000 8% Unsecured Compulsorily Convertible Debentures (CCDs). The warrants and CCD shall be converted into 1 (one) equity share of Rs 10/- in the capital of the Company at a price not less than Rs 819/- (Rs eight hundred nineteen only). Assuming full conversion of FCCB in time to come, the promoter’s stake in Jindal Saw Ltd shall be app. 45.9%. The allotment / conversion process shall be completed by Sep 2009.
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