Tata Steel approves plans to raise Rs 5,000-cr through greenshoe, NCDs

Tata Steel works in Scunthorpe, northern England | Photo: Reuters

Tata Steel Tuesday said its board has approved plans to raise Rs 4,000 crore through issuance of non-convertible debentures on a private placement basis.

In addition, the company's board also approved a greenshoe option of Rs 1,000 crore, the company said in a regulatory filing.

The committee of directors approved issuance of "40,000 NCDs of face value Rs 10,00,000 each aggregating to Rs 4,000 crore plus a greenshoe option of up to Rs 1,000 crore," the company said.

The securities would be "unsecured, redeemable, rated, listed, non convertible debentures (NCDs)" to be issued on a private placement basis, it said.

The date of allotment has been fixed as March 1, 2019, while the date of maturity would be March 1, 2034, it said.

Shares of the company today ended 0.14 per cent down at Rs 504.15 apiece on BSE.

Tata Steel is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum (MTPA). It is one of the world's most geographically-diversified steel producers.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel