The board of Sathavahana Ispat has consider and approved the expansion of metallurgical coke facility by 150,000 tpa and co-generation power facility by 10 MW at Kudithini Plant with capital outlay of Rs 86 crore.The board has approved to issue 15,75,000 share warrants by private placement on preferential basis to promoters group at issue price of Rs 60 with option to convert each share warrant by exchange / surrender for one equity share of Rs 10 at a future date, which upon fill conversion to equity would account for 4.72% of expanded paid up capital of the company.
The board has approved to issue equity shares by private placement on preferential basis at issue price of Rs 60 per share to 49,00,000 equity shares to Stemcor Holdings, London and it's group companies which account for 14.67% of expanded paid up capital of the company and 6,25,000 equity shares to promoters group which account for 1.87% of expanded paid up capital of the company. The promoter group's holding in the expanded capital would cone down to 36.01% from the current level of 37.37%.
Further, the board has decided to convene extraordinary general meeting for the approval of the preferential issue and allotment of share warrants and equity shares on 14 January 2008.
This was approved at the board meeting held on 20 December 2007.
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