Tata Steel Rights Issue
Tata Steel today came out with details about its proposed rights issue. Tata Steel has come out with two different unlinked rights issues. One rights issue would be of equity shares and the other rights issue would be of 2% Cumulative Convertible Preference Shares (CCPS). Under the firs rights issue option equity shareholders of Tata Steel will get one rights for every 5 shares held. Tata Steel has priced the rights issue under this option at Rs. 300 per share. The second Tata Steel rights issue option is more complex. Here the ratio of the rights issue to the existing shareholders is 9:10 (9 rights for every 10 shares of Tata Steel held by existing shareholders of tata steel). The face value of CCPS is Rs. 100 and this will be automatically and compulsorily converted into equity shares of Tata Steel of face value Rs. 10 each. The record date for both the Tata Steel Rights Issue has been fixed as November 05, 2007.
