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Tata Steel inches up on board's nod for fund raising

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Capital Market
Last Updated : Apr 21 2017 | 9:47 AM IST

Tata Steel was up 0.88% to Rs 458 at 9:26 IST on BSE after the company said its board approved issue of debt securities of upto Rs 9000 crore.

The announcement was made after market hours yesterday, 20 April 2017.

Meanwhile, the S&P BSE Sensex was up 64.08 points or 0.22% at 29,486.47.

On the BSE, 39,000 shares were traded on the counter so far as against the average daily volumes of 6.85 lakh shares in the past one quarter. The stock had hit a high of Rs 460 and a low of Rs 456.50 so far during the day.

The stock had hit a 52-week high of Rs 508.45 on 17 March 2017 and a 52-week low of Rs 297.40 on 24 June 2016. It had underperformed the market over the past one month till 20 April 2017, sliding 8.61% compared with the Sensex's 0.33% fall. The scrip had also underperformed the market over the past one quarter, declining 0.13% as against the Sensex's 8.83% rise.

The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel's board at a meeting held yesterday, 20 April 2017, reviewed the performance, capital structure and financing plan of the company. Based on the review and pursuant to the existing shareholders approval, the board approved issue of debt securities of upto Rs 9000 crore in the form either of non-convertible debentures on private placement basis or foreign currency or rupee denominated bonds or a combination thereof in one or more tranches.

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The funds will primarily be deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes. The board of directors also authorized the finance committee of the board to determine and approve the timing and terms of such issue of securities.

On consolidated basis, Tata Steel reported net profit of Rs 231.90 crore in Q3 December 2016 compared with net loss of Rs 2747.72 crore in Q3 December 2015. Net sales rose 13.4% to Rs 27843.92 crore in Q3 December 2016 over Q3 December 2015.

Tata Steel is the world's second-most geographically-diversified steel producer, with operations in 26 countries and commercial presence in over 50 countries.

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First Published: Apr 21 2017 | 9:27 AM IST

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