DRAFT LETTER OF OFFER (Private and Confidential) For Equity Shareholders of the Company only SOUTHERN IRON AND STEEL COMPANY LIMITED (Incorporated on September 11, 1991 under the Companies Act, 1956) Registered Office: Pottaneri – M Kalipatti Village, Mecheri – 636 453, Mettur Taluk, Salem District, Tamil Nadu. Tel: (04298) 278400 ~ 403 Fax: (04298) 278618 E-mail:
[email protected] DRAFT LETTER OF OFFER Issue of 17,37,41,655 Equity Shares of Rs. 10 each for cash at par on rights basis to the existing Equity Shareholders of the Company in the ratio of 23 (Twenty Three) Equity Shares for every 10 (Ten) Equity Shares held on Record Date _________, 2005 aggregating Rs. 173,74,16,550. The face value of the Equity Shares is Rs. 10 per share and the Issue Price is 1 time the face value. GENERAL RISKS Investment in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of the Issuer and the Issue including the risks involved. The securities have not been recommended or approved by Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document. Attention of investors is drawn to the statement of Risk Factors appearing on Page iii of the Letter of Offer. ISSUER’S ABSOLUTE RESPONSIBILITY