Tata Steel to raise Rs1,000 crore with preferential share issue
15 Jul 2010
Tata Steel, the world's eighth largest steel maker plans to raise Rs1,069 crore by equity share issue and warrants on a preferential basis to its promoter Tata Sons.
The company will issue 1.50 crore shares worth Rs891 crores at Rs594 a share and 1.20 crore warrants convertible into equity shares at Rs594 a share within 18 months of the allotment date.
''According to SEBI ICDR (Issue of Capital and Disclosure Requirements) regulations, 2009, an amount equivalent to 25 per cent of the price (Rs594 a share) amounting to Rs148.50 a warrant, aggregating to Rs 178.20 crore, would be paid by Tata Sons on allotment of the warrants,'' the company said in a statement to the BSE after market hours yesterday.
Post conversion of warrants and additional share allotment, Tata Sons' will hold 32.47 per cent in the company up from 31.32 per cent. According to the company's communication to the BSE that the current proposal is part of its fund raising programme.
Earlier in the day, shares of the company were up nearly 2 per cent to Rs519 on the BSE.
As of December 2009, Tata Steel's gross debt stood at $12.9 billion.