Jindal Stainless gains on preferential issue plan

The shareholders approved issuing of 27.1 million shares amounting of Rs 200 crore to the exiting promoter group on preferential basis.

Jindal Stainless is trading higher by over 4% at Rs 75.05 after the company said that its shareholders approve issuing of 27.1 million shares amounting of Rs 200 crore to the exiting promoter group on preferential basis.

“The company will allot 13.55 million equity shares of face value of Rs 2 each at a price of Rs 74 per share amounting to Rs 100 crore on or before March 31, 2013 and the same number of shares on or before June 30, 2013,” Jindal Stainless said in a statement.

The said preferential share offer are as part of the requirement mentioned in the Letter of Approval dated September 18, 2012 issued by the corporate debt restructuring (CDR) cell while approving the reworked CDR scheme of the company, it added.

The stock opened at Rs 72.75 and hit a high of Rs 76.35 on the NSE. A combined 219,609 shares have changed hands on the counter so far on both the exchanges.