Tata Metaliks surges on plan to issue preference shares to Tata Steel

Mumbai: Shares of Tata Metaliks surged by up to 8 percent today after its board approved an issue of preference shares worth Rs 100 crore to its promoter Tata Steel.

After starting the day on a robust note, the stock further gained 7.92 percent to Rs 72.90 on the BSE. At the NSE, the scrip shot-up by 8.3 percent to Rs 73. However, later, it saw some profit-booking and was trading 3.03 percent up at Rs 69.60 on the BSE at 1130 hours.

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"The Board of Directors of the company at its meeting held yesterday, approved 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 percent and are redeemable after 3 years from the date of allotment, it added.

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As on December 31, Tata Steel held 46.66 percent stake in Tata Metaliks, which is into pig iron manufacturing.

PTI