Tata Steel trades ex-rights, pares gains after hitting 52-week high

The stock hit a 52-week high of Rs 747, up 2% on BSE in early morning trade in otherwise subdued market.

Tata Steel pared gains after hitting 52-week high of Rs 747, up 2% on BSE in early morning trade in otherwise subdued market.

The stock of steel major turned ex-rights today, in the ratio of 4:5 i.e. four full paid equity shares for 25 equity shares held on the record date at price of Rs 510 per share. The company has fixed Thursday, February 1, 2018 as the ‘record date’ for the purpose of rights issue of equity shares.

The Board of Directors of Tata Steel at their meeting held on December 18 & 19, 2017 had approved issuance of equity and equity linked instruments including ordinary shares of the company by way of a rights issue to existing shareholders on record date for an amount not exceeding Rs 128 billion to finance organic and inorganic growth plans.

The issue will comprise "up to 155 million fully paid up ordinary share not exceeding Rs 80 billion" and "78 million partly paid up ordinary share not exceeding Rs 48 billion."

The issue will open on February 14 and close on February 28.

At 12:13 pm, the stock was trading 1.4% lower at Rs 720 on BSE, as compared to 0.14% decline in the S&P BSE Sensex. A combined 2.61 million shares changed hands on the counter on BSE and NSE so far.