Tata Steel on Saturday fixed the price band of Rs 594-610 a share for its follow -on public offer of 5.7 crore shares, which will hit the capital markets between January 19 to 21.
At the higher end of the price band at Rs 610 per share, the company will garner Rs 3,477 crore from the FPO, while at the lower end of price band at Rs 594 a share, it will raise Rs 3,385 crore.
Price of the FPO, in which company is off loading its 5.94 per cent stake, is offered at a discount of 5 to 8 per cent from stock price of the date of announcement, which stood at Rs 647.6 a share.
However, the company's scrips had fallen by over 4 per cent since then and was traded at Rs 621.7 apiece on the Bombay Stock Exchange on Friday, down 2.47 per cent from the previous close.
As on September 30, 2010, promoters hold 32.48 per cent stake in company, while Insurance companies and foreign institutional investors hold 22.4 per cent and 15.87 per cent stake, respectively.
The company has fixed the bid lot of a minimum of 10 equity shares and in multiples of 10 shares thereafter for the issue which comprises a net issue to the public of 5.55 crore shares and a reservation of 15 lakh shares for subscription by eligible employees.
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