CVC International, part of Citigroup, has evinced interest to pick up about five per cent stake in Jindal Iron and Steel Company Ltd.
JISCO would consider a proposal to issue 12.25 lakh (1.22 million) shares to CVC International on preferential basis at a board meeting scheduled on July 4, at a price determined as per the norms of Securities and Exchange Board of India, chairman and managing director Sajjan Jindal told shareholders at the annual general meeting in Mumbai on Friday.
These shares would be issued to Citicorp Banking Corporation, an investment vehicle of CVC International.
The balance shares would be picked by the Citigroup entity from the open market, Jindal said.
According to the proposal for investment agreement, CVC International has sought certain minority protection rights through this preferential allotment of shares representing 2.78 per cent of the equity capital of the company.
The rights would get triggered off on CVC International holding 4.8 per cent or more stake in the company.