Tata Steel Scrip Turns Ex-Rights; Pares Early Gains Later

The steel major has earlier announced a rights issue offer for which the record date has been decided as February 1, 2018. Today the stock of the company turned ex-rights at a price of Rs. 510 for a share in the ratio of 4:5 which means 4 fully paid-up equity shares for every 25 shares held by the shareholder of Tata Steel.

The rights issue of the company will open on February 14 and close on February 28. The issue will include up to 155 million fully paid up ordinary share not ove Rs 80 billion and 78 million partly paid up ordinary share not exceeding Rs 48 billion.

Earlier in its board meet, the company decided to issue equity and other equity linked instruments to company's shareholders via rights issue for an amount upto Rs. 128 billion for financing its organic as well as inorganic growth plans.

In intraday trade on Wednesday, the scrip rose by as much as 2% in early trade on the BSE but later pared most of its gains and closed lower by over 3% and 9% on the BSE and NSE respectively at Rs. 705.05.

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