Tata Steel may go to the market again to raise funds for its project expansions.
"We will resort to market as and when it is necessary... We have gone to the market recently for the $500 million (about Rs 2,400 crore) GDR. So as and when required we will go to the market," Tata Steel Managing Director B Muthuraman told reporters here today.
However, he maintained that the company's liquidity position at present is very strong.
"The liquidity position of Tata Steel is very strong. We are sitting on a cash of something close to little over $2 billion. So Tata Steel's liquidity position going forward is good," he added.
Last month, the company made an offering at the London Stock Exchange to issue 6,54,10,589 GDRs (Global Depository Receipts) at a price of $7.644 a piece, aggregating to $500 million.
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"Our GDRs are listed in London. So that is the first listing we have done overseas. In fact, it is the largest GDR ever to have been listed on the London stock exchange," Muthuraman said.
The funds, if raised, will be used mainly for its project expansions. The company has plans to take its annual production capacity to 16 million tonnes by 2014 at an estimated investment of about Rs 40,000 crore. The company has a capacity of 6.8 million tonnes per annum (MTPA) in Jamshedpur which it plans to take to 10 MTPA by mid-2011.
Asked about Tata Steel's share price, Muthuraman said, "I am not going to comment on Tata Steel shares. I neither control the share, nor I keep the shares... (the price of) share is an opinion of the market on the company."