Shares of Tata Metaliks surged by up to 8 per cent 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 per cent to Rs 72.90 on the BSE. At the NSE, the scrip shot up by 8.3 per cent to Rs 73.
However, later, it saw some profit-booking and was trading 3.03 per cent up at Rs 69.60 on the BSE at 11.30 a.m.
“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 Rs 100 crore ... to Tata Steel on preferential basis,” the company said in a filing to the BSE.
The preference shares, to be allotted 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, Tata Steel held 46.66 per cent stake in Tata Metaliks, which is into pig iron manufacturing.