Tata Steel CCPS

I am holding 10 shares of Tata Steels. As per announcement given below, I can get 9 CCPS. But at the time of its conversion to equity share, 6 CCPS are converted to 1 equity share. Then what about the other 3 CCPS that I will hold?


The Committee of Directors at its meeting held on Friday, 05th Oct. approved as under:

a) Size of CCPS to be offered on Rights basis:
The Company would issue CCPS of Rs. 5,481 crores in the ratio of 9:10 to the existing equity shareholders.

b) Conversion price of CCPS into Equity Share:
The six CCPS of the face value of Rs.100 each will be compulsorily and automatically converted into one Equity Share fully paid up of Rs.10 each at a premium of Rs. 590.

I have 5 Tata Steel, so what for me.

The Committee of Directors at its meeting held on Friday, 05th Oct. approved as under:

a) Size of CCPS to be offered on Rights basis:
The Company would issue CCPS of Rs. 5,481 crores in the ratio of 9:10 to the existing equity shareholders.

b) Conversion price of CCPS into Equity Share:
The six CCPS of the face value of Rs.100 each will be compulsorily and automatically converted into one Equity Share fully paid up of Rs.10 each at a premium of Rs. 590.

so i will not get even single share.
or should i buy some more shares now only.
thanks a lot

Buying more Tata Steel shares now will certainly not work for you. This rights issue is only for shareholders holding shares upto 5 November 2007.

If you have 5 Tata Steel shares, you will get 1 equity share in this rights issue.

But for CCPS, I am not sure what they will give to you. Even I have 10 shares. But as ratio of CCPS is 9:10, I believe that I will get 9 CCPS. But after 2 years, when 6 CCPS will be automatically converted to 1 equity share, I am eager to know that what will be reward for 3 extra CCPS?

thanks sir

Hello Sir,
Could you pls share the reward for the extra 3 CCPS held (post conversion of 6ccps into one equity share) . i had 730 ccps and got 119 equity shares against it (119*6=714), i do not kow the status of remaining 16ccps still unpaid .
Pls share your views

rgds
Raghav

Hello Sir,
Could you pls share the reward for the extra 3 CCPS held (post conversion of 6ccps into one equity share) . i had 730 ccps and got 119 equity shares against it (119*6=714), i do not know the status of remaining 16ccps still unpaid .
Pls share your views

rgds
Raghav