Tata Metaliks said its board has approved an issue of preference shares worth Rs 100 crore to its promoter Tata Steel. Tata Metaliks is 46.6 per cent owned by Tata Steel and makes pig iron, an intermediate iron ore product used to make steel.
"The Board of Directors of the company at its meeting appved issue of one crore cumulative redeemable preference shares of Rs 100 each aggregating to Rs 100 crore to Tata Steel on preferential basis," the company said in a filing to the BSE.
The preference shares, to be alloted to Tata Steel, will carry a coupon rate of 8.5 per cent and are redeemable after 3 years from the date of allotment, it added.
As on December 31, 2011, Tata Steel holds 46.66 per cent stake in Tata Metaliks, which is into pig iron manufacturing.
Shares of Tata Metaliks rose 4.3 per cent on Tuesday while broader indices traded flat.
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