Post-FPO, promoters holding in Tata Steel to reduce by 2.4%

Tata Steel today said that the promoters holding in the company would come down by 2.4 per cent to about 30 per cent post its follow-on public offer (FPO), scheduled to hit the market on January 19.

"Promoters holding in Tata Steel will come down by 2.4 per cent after the follow-on public offer (FPO)," Tata Steel's Chief Financial Officer Koushik Chatterjee told reporters here.

As on September 30 last year, promoters held a 32.48 per cent stake in the company, while insurance companies and foreign institutional investors held 22.4 per cent and 15.87 per cent stakes, respectively.

The company has fixed the price-band of its FPO between Rs 594-610 per share which will hit the market between January 19 and 21.

At the higher end of the price-band, the company expects to mop up Rs 3,477-crore and at the lower end, Rs 3,385-crore.

Of the total FPO proceeds, Tata Steel plans to use Rs 1,800-crore for the expansion of its Jamshedpur facility and Rs 1,000-crore for debt repayment, Chatterjee said.

The expansion work at the Jamshedpur plant, which is scheduled for completion by March this year, will augment the steel production capacity of the plant to 10-million tonnes per annum.