Tata Steel raises Rs2,000 crore in non-convertible debentures
08 May 2008
Mumbai: Tata Steel Limited has raised Rs2,000 crore, including green shoe option, through a private placement of redeemable non-convertible debentures (NCDs), as part of a long-term financing plan.
The issue opened with an initial size of Rs750 crore on 5 May and closed on 6 May '08. The deemed date of allotment for the NCDs was 7 May 08, the company said in a website release.
The issue consisted of three series, including a 7-year maturity fixed rate series (Rs620 crore, a 3-year maturity floating rate series of Rs1,090 crore and a 3-year maturity fixed rate series of Rs290 crore.
The NCDs were assigned a rating of `AAA(ind)' by Fitch Ratings India Private Limited for the aggregate amount of Rs2,000 crore. The rating agency also affirmed the National Issuer Rating of `AAA (ind)' for the company.
The company has applied for listing the NCDs on the wholesale debt market segment of the National Stock Exchange (NSE). Each debenture carries a face value of Rs10 lakh and is being issued at par.
As part of its efforts to ensure raw material security, Tata Steel is undertaking a massive expansion of the Carborough Downs coal mine near Moranbah in Central Queensland, Australia, for an investment of about Rs1,555 crore.
Tata Steel rose 2.92 per cent to close at Rs845.65 after the company said it has raised Rs2,000 crore through private placement of redeemable non-convertible rupee debentures.
The counter witnessed total volumes of 19.21 lakh shares as against the two-week average volumes of 11.9 lakh shares.
