Ispat Industries - Updates

Ispat Industries Ltd has informed BSE that the Company had issued and allotted, on April 15, 2008, 11,32,44,580 Equity Share Warrants to the eligible promoters of the Company on preferential basis, in terms of Section 81(1A)of the Companies Act, 1956, and the then applicable Guidelines for Preferential Issues contained in Chapter XIII Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. The Equity Share Warrants had been issued at a price of Rs. 44.69 for each warrant.

In terms of the issue, the holders of the Equity Share Warrants had an option to apply for and be allotted 1 (one) equity share of the Company for each Equity Share Warrant held, any time after the date of allotment but on or before the expiry of 18 months from the date of allotment, in one or more tranches. Accordingly, the last date for exercising the option for conversion of warrants into equity shares was October 17, 2009.

Further the Company has informed that, the Equity Warrant holders have not opted to apply for equity shares for the warrants held by them and, hence, the aggregate amount of Rs. 50.61 crores (being 10% of the Issue price of Warrants) paid by the Warrant holders stands forfeited.