NEWS

Tata Steel plans to raise Rs 10,000 crore through sale of securities

Tuesday, Jul 21, 2015

Tata Steel sought shareholder approval to raise up to Rs 10,000 crore through sale of securities, the steelmaker said in its latest annual report. The sale of securities could be in the form private offerings in domestic or international market or through an issuance of shares, bonds, debentures and warrants.

Tata Steel said the financial markets are very dynamic in nature and it is hard to predict when and which market may provide them with windows of opportunity to raise capital that is cost-effective, has better terms and can help lengthen its maturity profile. Shareholder permission to issue securities in the international and domestic capital markets will allow the company the flexibility to tap into these pools opportunistically, it added.

"The company also seeks to continuously optimise its borrowings by ensuring they are aligned in terms of quantum, risk, maturity and cost with its earnings profile," the company said.

The pricing for any instrument which may be issued by the company on the basis of this resolution will be done by the Board or a Committee thereof in accordance with applicable laws, the report stated.

It also stated the issues will be structured in a manner such that the additional ordinary share capital that may be issued under resolution would not be more than 5 per cent of the paid-up ordinary share capital of the company.

The company's annual general meeting is scheduled for Aug 12, 2015.

 

economictimes.indiatimes.com

Other News