Tata Steel board approves ₹2,700 cr fundraise via NCDs
Upstox
2 min read • Updated: March 19, 2024, 6:29 PM
Summary
Tata Steel said it would be issuing a total of 2,700 NCDs on a “private placement basis,” each carrying a face value of ₹1 lakh each, taking their cumulative value to ₹2,700 crore. The company said that the tentative date of allotment would be March 27, 2024, whereas the tentative date of maturity would be March 26, 2027.
The board of directors of Tata Steel has approved a proposal to raise ₹2,700 crore via the issuance of non-convertible debentures (NCDs), a regulatory filing said on Tuesday, March 19.
The NCDs will be of “fixed rate” and issued on a “private placement basis,” Tata Steel informed the bourses. They will be unsecured, redeemable and listed, it further noted.
A total of 2,70,000 NCDs will be issued, each carrying a face value of ₹1 lakh, aggregating to ₹2,700 crore, the company said.
The tentative date of allotment would be March 27, 2024, whereas the tentative date of maturity would be March 26, 2027. The coupon or interest payment on the NCDs will be made annually.
The NCDs have been rated as ‘AA+’ by India Ratings and ‘AA+’ by CARE Ratings Ltd, the exchange filing added.
The board’s nod for the fundraise came a day after Tata Steel’s shares soared by 5.69%, as metal stocks reacted positively to China reporting a 7% surge in January-February industrial output.
Read more: Metal stocks shine following China's strong industrial output data
In the trading session on Thursday, March 19, Tata Steel’s shares settled at ₹148.70 apiece on the NSE at the closing bell, down 0.67% as against the previous day’s close.
In the quarter ending December 2023, Tata Steel had reported a net profit of ₹522.1 crore, as against a net loss of ₹2,502 crore in the corresponding quarter of the previous fiscal year. The revenue from operations, however, dipped 3.1% year-on-year to ₹55,311.9 crore.