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| Tata Steel plans to raise Rs 5k cr to part fund capex |
| Press Trust of India / New Delhi Aug 11, 2009, 20:02 IST |
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Tata Steel is looking to raise Rs 5,000 crore through issuing securities to part fund its capital expenditure, acquisitions and debt-reduction, among others.
The steel maker will seek shareholders' nod for the same at its annual general meeting scheduled later this month.
"The company intends to raise additional long-term finance by issue of securities in the domestic/international markets and utilise the proceed for capital expenditure, repayment of indebtedness, acquistions...," Tata Steel said in its annual report.
"The proposed resolution...Seeks the enabling authorisation of the members to the Board of Directors, to raise additional funds...Including by way of depository receipts for an amount not exceeding Rs 5,000 crore," it said.
On August 5, Tata Steel Managing Director B Muthuraman said that as and when it is required, the company may hit the market to raise funds.
Last month, the company had raised $500 million (about Rs 2,400 crore) by issuing Global Depository Receipts (GDR) on the London Stock Exchange and said the fund would be mainly utilised to fund project expansion.
The company plans to take its annual production capacity to 16 million tonnes by 2014 at an estimated investment of about Rs 40,000 crore. The company has a capacity of 6.8 million tonnes per annum (MTPA) in Jamshedpur which it plans to take to 10 MTPA by mid-2011.
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