Jindal Stainless to issue preference shares worth Rs 650 cr

Jindal Stainless today said its board has approved issuance of preference shares to its lenders for an aggregate amount of Rs 650 crore on preferential basis upon conversion of funded interest term loans.

"The board of directors in its meeting held today has inter alia approved (the same) subject to the approval of shareholders," Jindal Stainless said in a filing to BSE.

The board has also approved issuance of equity shares to the lenders of the company for the aggregate value of Rs 250 crore on preferential basis upon conversion of funded interest term loan, the filing said.

The board has also approved issuance of compulsorily convertible debentures (CCDs) to promoter group of companies on preferential basis as follows -- Jindal Stainless (Hisar) Ltd for an amount of Rs 250 crore, Jindal United Steel Ltd for Rs 120 crore and Jindal Coke Ltd for up to Rs 60 crore, the filing added.

The board has also given its nod to issuance of compulsorily convertible warrants to the promoter group of companies for an aggregate amount of Rs 75 crore on preferential basis.