Post-Covid war chest: Tata Steel plans to raise up to Rs 10,000 crore

Bleak demand outlook in the domestic as well as global market is another reason Tata Steel may be looking to have additional liquidity as margins are expected to take a hit in the coming quarters

Tata Steel, the oldest steel producer in the country, is looking to raise up to Rs 10,000 crore after the Reserve Bank of India (RBI) last month decided to provide additional liquidity to the system hit by the coronavirus disease (Covid-19) pandemic.

“The amount raised from the market would be mostly kept as additional liquidity buffer by the company and can be used to make any immediate short-term debt repayments that may arise post this lockdown,” a source close to the development told Business Standard.

Tata Steel is not the only company looking to raise funds to take advantage of the liquidity