VISA Steel Limited , a player in the steel industry, has completed a significant corporate action involving the conversion of warrants into equity shares, strengthening its capital structure and increasing promoter shareholding.

Warrant Conversion and Shareholding Update

The company's Preferential Issue Committee approved the allotment of 1,35,00,000 equity shares to VISA Industries Limited, a promoter group entity, following the conversion of an equal number of fully convertible warrants. This transaction has resulted in a substantial increase in the promoter group's shareholding.

Shareholding Pattern Changes

Following the warrant conversion, VISA Industries Limited's shareholding in VISA Steel has increased significantly, as disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Impact on Share Capital Structure

The conversion has resulted in a substantial increase in the company's paid-up share capital, expanding the equity base and strengthening the balance sheet.

Original Warrant Framework

This conversion follows the original allotment of 5,00,00,000 fully convertible warrants to VISA Industries Limited, which was approved by shareholders at an Extra-Ordinary General Meeting.

Strategic Implications

The newly allotted equity shares rank pari-passu with existing equity shares of the company. With 3,65,00,000 warrants still remaining unconverted, VISA Industries Limited retains the option to convert the balance warrants within the stipulated 18-month period, which could potentially bring in an additional Rs. 109.50 crore to the company.

This capital infusion and increased promoter shareholding demonstrates strong confidence in VISA Steel's prospects. The enhanced shareholding provides greater strategic control while the capital strengthens the company's financial position for future growth initiatives in the competitive steel industry.

VISA Steel Ltd, a prominent player in the steel industry, has achieved a significant milestone in its operational journey. The company recently announced that it has received the Consent to Operate from the State Pollution Control Board, Odisha, marking a crucial step in its regulatory compliance efforts.

Key Highlights

• VISA Steel Ltd obtained the Consent to Operate on September 6.
• The consent was granted through an order issued by the State Pollution Control Board, Odisha.
• This development follows a previous disclosure made by the company on July 11.

Regulatory Compliance

The Consent to Operate is a critical permission granted by environmental regulatory authorities, allowing companies to conduct their operations within prescribed environmental norms. For VISA Steel, this consent signifies that the company has met the necessary environmental standards set by the Odisha State Pollution Control Board.

Company's Disclosure

In compliance with regulatory requirements, specifically Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, VISA Steel promptly informed the stock exchanges about this development. The disclosure was made to both the BSE Limited and the National Stock Exchange of India Limited, where the company's shares are listed.

Impact on Operations

While the specific details of the Consent to Operate are not disclosed, this approval is typically crucial for industrial operations. It allows VISA Steel to continue its manufacturing activities at its plant, ensuring compliance with environmental regulations.

About VISA Steel Ltd

VISA Steel Ltd is based in Odisha, India. The company's plant is located at the Kalinganagar Industrial Complex in Jakhapura, Jajpur district, Odisha. As a steel manufacturer, environmental compliance is a critical aspect of its operations, making this recent development significant for the company's ongoing activities.

This latest regulatory approval underscores VISA Steel's commitment to operating within the framework of environmental regulations, an increasingly important factor in the steel industry's sustainable growth narrative.