Steel Strips & Tubes - Outcome Of Board Meeting

Steel Strips & Tubes Ltd has informed that the Board of Directors of the Company at its meeting held on October 20, 2007, has approved the business plan to develop the properties of third parties / associates on space / revenue sharing basis. The Board considered and approved three projects viz, an Information Technology Park, a Shopping Mall and a Convention Center together having an estimated value of Rs 300 crores approx., for development on space / revenue sharing basis. The projects are likely to be implemented over a period of 42 months. As per feasibility conducted by the Consultant, the Internal Rate of Return (IRR) is expected at around 40%. The Board further considered and approved the proposal to explore the possibility to raise funds through Foreign Currency Convertible Bonds of Rs 40 crores and right issue of Rs 50 crores to partly finance these projects, subject to approval of shareholders and other appropriate authorities.