Enclosed herewith Outcome of Board Meeting held on today i.e., April 14, 2025.
SCANSTL · price
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The Board of Directors of Scan Steels Ltd, at its meeting on April 14, 2025, approved the issuance and allotment of 20,42,133 Optionally Convertible Redeemable Preference Shares (OCRPS) on a private placement basis, each with a face value of Rs. 10. This issuance is being done in lieu of 28,31,139 existing Non-Convertible Redeemable Preference Shares (NCRPS) held by three existing investors — Bayanwala Brothers Pvt. Ltd., Gopikar Supply Pvt. Ltd., and Ascon Merchandise Pvt. Ltd. The move effectively alters the terms of the existing NCRPS to make them convertible into equity. A registered valuer's valuation report was also considered. The Board additionally approved a Postal Ballot notice to seek shareholder approval, with remote e-voting opening on April 15, 2025 and closing on May 14, 2025, and appointed CDSL as the e-voting agency along with a scrutinizer for the process.
Existing NCRPS holders will now hold OCRPS, giving them the option to convert their preference shares into equity at a later stage, which could lead to equity dilution for current shareholders if conversion occurs. Shareholders will have the opportunity to vote on this proposal via the Postal Ballot between April 15 and May 14, 2025.