Tata group holding company Tata Sons has hiked its stake in Tata Steel by converting 12 million warrants into equal number of equity shares for a total of Rs712.8 crore.
Tata Steel today said Tata Sons has exercised the option to convert 12 million warrants into equity shares at Rs594 apiece.
''Tata Sons vide their letter dated January 20, 2012 has exercised the option to convert 1.2 crore warrants into ordinary shares of the company at a price of Rs594 per share,'' Tata Steel said in a filing with the Bombay Stock Exchange (BSE).
It also said that the committee of directors has approved the allotment of 12 million ordinary shares to Tata Sons at the said price.
As of 31 December 2011 Tata Sons held The 959.21 million shares, or a 30.73 per cent stake, in Tata Steel.
Tata Steel said its committee of directors has approved the allotment shares of Rs10 each at a premium of Rs584 per share.
The company's shares were up 2.7 per cent at Rs415 at evening trade on the BSE, outperforming the Sensex.