By Our Correspondent
BHUBANESWAR: Upon Completion of Transaction and Open Offer, Steel and Mines Magnate Mahesh Kumar Agarwal led Sree Metaliks Ltd is set to be Classified as a Promoter of SAL Steel while the existing Promoters will Cease to hold that Status.
Assuming full conversion of warrants, Sree Metaliks is expected to hold a 37.99% stake in SAL Steel. The infusion of ₹99.00 crore, when fully realized, could provide the company with additional capital for growth initiatives or debt reduction.
SAL Steel Limited has approved a preferential allotment of 1.93 crore equity shares and 3.58 crore convertible warrants to Sree Metaliks Limited at ₹18 per unit, totaling ₹99 crore. The transaction includes 1.93 crore equity shares for ₹34.65 crore and 3.58 crore warrants for ₹64.35 crore. Sree Metaliks has paid an initial ₹16.09 crore for the warrants.
This deal will increase SAL Steel’s paid-up equity capital from ₹84.97 crore to ₹104.22 crore. Upon completion and full conversion of warrants, Sree Metaliks is expected to hold a 37.99% stake in SAL Steel and become a promoter, while existing promoters will lose this status.
The company has allotted 1.93 crore equity shares at ₹18.00 per share, which includes a premium of ₹8.00 per share. 3.58 crore warrants have been issued, each convertible into one equity share within 18 months from the date of allotment.
Sree Metaliks has paid ₹4.50 per warrant (25% of the issue price) as the initial subscription amount, totaling ₹16.09 crore. Following this allotment, SAL Steel’s paid-up equity share capital has increased from ₹84.97 crore to ₹104.22 crore.
