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Tata Steel to seek approval from shareholders for Rs 120-billion NCD issue

The board will decide on the terms of the issue, including the class of investors to whom the NCDs are to be issued, time, the number of NCDs, tranches and issue price

Tata Group
Tata Group
Ishita Ayan Dutt Kolkata
Last Updated : Jun 25 2018 | 2:25 AM IST
Tata Steel will seek shareholders’ approval for the issue of non-convertible debentures (NCDs) on private placement basis not exceeding Rs 120 billion at its forthcoming annual general meeting (AGM).
 
The board will decide on the terms of issue, including the class of investors to whom the NCDs are to be issued, time, the number of NCDs, tranches, issue price, tenor, interest rate, premium/discount, listing (in India or overseas) and any matter as may be necessary at any stage from time to time, the AGM notice mentioned. The company proposes to make the issue within a year from the AGM.

 
The company has explained to shareholders that the move was in the light of the organic and inorganic growth strategy, as well as its goal of having a healthy balance sheet.
 
"The company also opportunistically taps debt capital markets from time to time to meet a portion of its borrowing needs, which often presents windows of opportunity to raise capital that is cost-effective, has better terms and can help lengthen its maturity profile.
 
The flexibility to raise capital through issue of market instruments becomes more important in view of the changing regulatory landscape.
 
 

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