The board of directors of Electrosteel Steels Ltd will meet on July 1 to take on record the CLB order for issuance of equity shares under preferential allotment as per corporate debt restructuring to Electrosteel Castings Ltd, the promoter company.

A petition was filed before CLB for issuance of shares at discount after the the preferential issue was already approved by shareholders.

In September last year, Electrosteel Steels, a leading producer of ductile iron pipes used for water transportation, had received a nod from the CDR cell for its proposed Rs 6,181 crore CDR package.

The board of directors, in October, had approved issue 1.7 crore shares (Re 1 paid-up) at a price of Rs 13.85 (premium of Rs 12.85) a share, aggregating up to Rs 23.63 crore to the promoters on preferential basis and the same was approved in the EGM in November 23 by shareholders.

Shares of Electrosteel Steels was trading at Rs 6.6, up 0.6 per cent at 10 am, while the stock of Electrosteel Castrings gained 3.6 per cent at Rs 34.