NIPPONDENR

Ispat Industries Ltd. has informed the Exchange that:- (a) At the meeting of the Committee of BODs of the Company held on December 24, 2005, the revision in Equity Share Capital of the Company, pursuant to the Scheme of Reconstruction and Amalgamation sanctioned by the Hon'ble High Courts of Calcutta and Bombay (which Scheme has since become effective from October 26, 2005), has been considered and noted. In terms of the said Scheme, 40% of the existing Equity Share Capital of the Company stands converted into 0.01% Cumulative Redeemable Preference Shares (0.01% CRPS) of Rs.10/- each. Accordin

(b) Further, at the said meeting, the Committee has also made the following allotments, in terms of the aforesaid Scheme of Reconstruction and Amalgamation: - (i) 22,02,00,000 Equity Shares of Rs.10/- each at par to the Promoters of the Company. (ii) 8,68,00,000 - 0.01% CRPS of Rs.10/- each at par to the Promoters of the Company. (iii) 24,17,79,890 Equity Shares of Rs.10/- each at par to the Lenders of the Company towards conversion of Rupee Term Loans amounting to Rs.241,77,98,900/-. (iv) 34,49,08,141 Equity Shares of Rs.10/- each at par to the Equity Shareholders of erstwhile Ispat Metallic

Ispat Industries Ltd. has informed the Exchange that the Scheme of Reconstruction and Amalgamation has become effective from October 26, 2005. The said Scheme, interalia, contemplates the following :- (A) Reconstruction of Capital of Ispat Industries Ltd. (IIL) Reconstruction of Capital of Ispat Industries Ltd. comprises the following :- (a) Reduction of existing 692590311 Equity Shares of Rs. 10/- each by 40% i.e. by 277036125 Equity shares of Rs. 10 /- each. (b) Issue of 277036125 - 0.01% Cumulative Redeemable Preference Shares (0.01% CRPS) of Rs. 10/- each at par in lieu of the aforesaid r

Ispat Industries Ltd. has informed the Exchange that in terms of the Corporate Debt Restructuring (CDR) guidelines issued by Reserve Bank of India, various lenders had approved a CDR scheme to Ispat Industries Ltd as well as Ispat Metallics India Limited (IMIL). Pursuant to the provisions of the said CDR scheme, a Scheme of Reconstruction of Ispat Industries Ltd as well as IMIL and the amalgamation of IMIL with Ispat Industries Ltd was approved. The said scheme of reconstruction and amalgamation (hereinafter referred to as the 'Scheme') has also been approved by the respective companies' share

Ispat Industries Ltd. has informed the Exchange that ,upon being petitioned, the Hon'ble High Courts of Judicature at Calcutta and Bombay have, vide their separate orders of August 03 and August 05, 2005, respectively, sanctioned the scheme of reconstruction and subsequent amalgamation of Ispat Metallics India Limited with the Company, under the provisions of Sections 391 to 394 of the Companies Act, 1956. The said orders have been issued, however, on August 08, 2005 and August 11, 2005 respectively. The Company has further informed the Exchange that the aforesaid scheme of reconstruction and

Ispat Industries Ltd. has informed the Exchange that the BoD's of the Company at its meeting held on October 01, 2004, considered and approved a Scheme of Reconstruction and Amalgamation under Sections 391 to 394 of the Companies Act 1956. The salient features of the aforesaid Scheme are as under : 1) Implementation of the following provisions of the Corporate Debt Restructuring Scheme approved by the Company's Lenders : (a) Conversion of 40% of existing Equity Capital into 0.01% Cumulative Redeemable Preference Shares (CRPS) of the face value of Rs.10/- each amounting to Rs.277.04 crores. (b)

4) The appointed date for the amalgamation is April 01, 2004. The Scheme is subject to requisite consents(s), approval(s) of the requisite majority of the members and creditors of the Company and Ispat Metallics India Ltd., the Hon'ble High Courts at Kolkata and Mumbai and the permission or approval of the Central Government or any other statutory or regulatory authorities, which by law may be necessary for the implementation of the aforesaid scheme. Further, the Company has informed that consequent upon the aforesaid scheme of Reconstruction and Amalgamation becoming effective, the share capi