Jindal Steel jumps 4% as board okays pref allotment to promoters

NEW DELHI: Shares of Jindal Steel & Power climbed nearly 4 per cent in Friday’s trade after the company told stock exchanges that its board has approved allotment of convertible warrants to a promoter group entity.

In a filing to BSE, the company said that Its board members have approved issue of 4.80 crore convertible warrants to Opelina Finance and Investments, a promoter group entity on preferential basis, subject to shareholders’ approval and other regulatory approvals.

The stock rose 3.86 per cent to hit a high of Rs 123.50 on BSE. At this price, the company commands a market capitalisation of Rs 11,500 crore.

Opelina Finance and Investments had 9.82 per cent stake in JSPL at the end of December quarter.

“The board also approved the issue of 14.20 lakh equity shares to Nalwa Steel & Power on preferential basis, subject to the approval of the shareholders of the company and other necessary regulatory approvals,” the company said.

Meanwhile, the company said its has appointed MZ & Associates' company secretaries as scrutinizer to conduct the postal ballot process.