Tata Sons hikes stake in Tata Steel

“Tata Sons… has exercised the option to convert 1.2 crore warrants into ordinary shares of the company at a price of Rs 594 per share,” Tata Steel said in a regulatory filing to the BSE.

However,it did not mention the percentage of the stake.

The topsy-turvey journey of the Sensex over the past year has brought down stock prices of many companies,deterring promoters from converting their warrants into shares.

One such example is Sapphire Technologies,one of the promoters of JSW Steel. Even after paying a whopping Rs 529 crore initial payment,Sapphire did not convert its warrants into shares.

The same was the case with one of the promoters’ of Kishore Biyani-promoted Pantaloon Retail. It forfeited Rs 100 crore,the stipulated 25 per cent initial payment for conversion of warrants.

“Tata Sons’ conversion was on the expected lines. They don’t want to leave any negative message to the investors,” an analyst with a leading brokerage firm said.

Tata Steel said its committee of directors has approved the allotment of 1.2 crore shares of Rs 10 each to Tata Sons at a premium of Rs 584 per share.

Tata Sons has been continuously increasing its stake in Tata Steel since the end of June quarter of the current fiscal. From 28.5 per cent stake during the April-June quarter,Tata Sons’ stake in Tata Steel has gone up to 28.8 per cent as of December-end.

Tata Steel shares closed 0.32 per cent higher at Rs 436.60 apiece on the BSE today.

Company INFO

More on Tata Steel

Stocks

More on Tata Steel