Tata Steel rose 2.78% to Rs 244.25 at 11:44 IST on BSE after the company said its wholly-owned Singapore-incorporated subsidiary executed agreements worth $1.5 billion for refinancing its debt.
The announcement was made during trading hours today, 2 December 2015.
Meanwhile, the BSE Sensex was down 92.23 points, or 0.35%, to 26,077.18.
On BSE, so far 6.90 lakh shares were traded in the counter, compared with an average volume of 11.50 lakh shares in the past one quarter.
The stock hit a high of Rs 245 and a low of Rs 238.15 so far during the day. The stock hit a 52-week high of Rs 469.50 on 3 December 2014. The stock hit a 52-week low of Rs 200 on 29 September 2015.
The stock had underperformed the market over the past one month till 1 December 2015, falling 3.69% compared with 1.83% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 9.92% as against Sensex's 1.84% decline.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
T S Global Holdings (TSGH), a subsidiary of Tata Steel incorporated in Singapore, has executed agreements for loan facilities of $1.5 billion comprising a 5-year loan of $750 million and a 6-year loan of $750 million. The proceeds of this loan will be used to repay existing term loan facilities in TSGH. The company said that the new loan facilities are at lower cost and with extension of the loan tenor.
Koushik Chatterjee, Tata Steel's Group Executive Director (Finance and Corporate), said that Tata Steel actively reviews all its financing options and seeks to continuously optimise its debt based on market conditions. The new loan facilities provide significantly greater flexibility in their terms and conditions and provide savings in cost, besides extension of tenor. This will provide greater financial headroom for the business, as it faces tough market conditions, even as overall leverage and debt remain unaffected, he added.
Tata Steel's consolidated net profit rose 21.87% to Rs 1528.71 crore on 18.1% fall in net sales to Rs 29068.54 crore in Q2 September 2015 over Q2 September 2014.
Tata Steel said the Q2 September 2015 bottomline was weighed by exceptional expenses of Rs 563.74 crore as compared to exceptional incomes of Rs 1145.01 crore in Q2 September 2014.
Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.
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