Tata Steel raises Rs 1,000 cr via debentures

Tata Steel said that it has allotted non-convertible debentures (NCDs) worth Rs 1,000 crore on a private placement basis to investors. "Committee of Directors on October 4, 2016 allotted 8.15 percent, unsecured, redeemable NCDs having a face value of Rs 10,00,000 each for cash aggregating to Rs 1,000 crore, on a private placement basis, to certain identified investors," the firm said in a regulatory filing. 

 

Last month, Tata Steel in another filing had informed the exchanges about its plans to allot NCDs worth Rs 1,000 crore. The tenure of the securities is 10 years. In August at its annual general meeting, Tata Steel shareholders had approved a special resolution to raise up to Rs 10,000 crore through various debt securities, including redeemable NCDs. 

 

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Tata Steel had said in a July filing said that over the last few years, the company has been investing in its steel making facilities in India and mining assets worldwide, while continuing to upgrade its facilities in Europe and South-East Asia. "The company seeks to balance its growth ambitions with its goal of having a healthy balance sheet.