VISA Steel Allots Convertible Warrants

Kolkata, Nov 26 (PTI) VISA Steel Ltd on Wednesday said its board-level committee has approved the allotment of five crore fully convertible warrants on a preferential basis to promoter group entity VISA Industries Ltd for a total consideration of Rs 200 crore.

The warrants have been priced at Rs 40 each, with the company receiving 25 per cent upfront, amounting to Rs 50 crore, the company informed the exchanges.

Each warrant carries the right to be converted into one equity share of face value Rs 10, with the balance 75 per cent payable at the time of conversion within 18 months of allotment. The warrants will currently remain locked and will not be listed, it said.

The company added that there is no change in the paid-up equity share capital due to this allotment. However, upon full conversion of the warrants within 18 months and full payment, the shareholding of VISA Industries Limited in the steel maker is expected to increase significantly.