Tata Steel to seek nod to raise Rs 5000 crore

In an intimation to the stock exchanges the company has informed that an EGM was being convened on March 24 for the purpose.

The company was seeking shareholders' approval for authorising the board to to offer, issue and allot in one or more tranches, in the course of domestic or international offering, a public issue and, or on a private placement basis or otherwise, debentures whether / partly fully convertible and / or securities linked to ordinary Shares and or rupees, foreign currency convertible bonds and or ordinary shares through depository receipts and or bonds with share warrants attached, secured or unsecured for cash, at such price or prices and on such terms of issue or other condition as the Board may, in its absolute discretion consider fit.

However, the total amount raised through the securities would not exceed Rs 5,000 crore in one or more currencies.

Further, the company was also seeking approval for authorising the board to borrow from time to time any amount of money which together with the sum already borrowed by the company may exceed the aggregate of the paid up capital of the company and its free reserves, that is to say, reserves not set apart for any specific purpose, provided that the total amount so borrowed by shall not at any time exceed the limit of Rs 10,500 crore.

The board is seeking permission to create such charges, mortgages and hypothecations in addition to the existing charges, mortgages and hypothecations created by the company, on such movable and immovable properties, both present and future and in such manner as the board may deem fit.