Tisco To Propose 10% Buyback At Agm

Private sector steel major Tata Steel will seek its shareholders' approval for buying back ordinary shares up to 10 per cent of its paid-up capital at its forthcoming annual general meeting (AGM).

The board of directors has also proposed an international offering of securities up to $150 million to part finance its capital expenditure programme and meet its working capital requirements. Both resolutions will be tabled at the AGM, scheduled for July 23.

The resolution for buying back shares has been proposed in anticipation of the government's decision to introduce buyback of shares.

Tisco's resolution, if approved, will be operative for 15 months from the date of passing the resolution or such other time limit as laid down by the law.

The detailed terms and conditions for the proposed international offering will be determined in consultation with the lead managers, advisors and underwriters, who are yet to be appointed.

While the price or the exact number of securities or shares to be issued cannot be decided now, the board proposes that the ordinary shares which may be issued pursuant to such an issue will be of an aggregate face value not exceeding 10 per cent of the increased ordinary share capital of the company.

The board is also likely to seek shareholders' approval for issuing in one or more tranches the securities in the international market to foreign FIs, foreign investors/companies and others, whether they are shareholders or not, through a public issue and/or on private placement basis and/or on preferential basis.

Last year, Tisco raised foreign currency loans worth $125 million. It also raised Rs 200 crore from secured redeemable non-convertible debentures.

The company has admitted its ordinary shares in the depository system of National Securities Depository Ltd (NSDL) and has offered investors the facility to hold the shares in electronic form and scripless trading.

As of March 31, 1998, 7,37,99,584 ordinary shares of the company have been dematerialised.