Tata Steel spurts on allotting NCDs worth Rs 1,000 cr

Tata Steel rallied 5.49% to Rs 298 after the company announced allotment of 10,000 non-convertible debentures (NCDs) on private placement basis.

Tata Steel announced on Thursday, 30 April 2020, that the committee of directors has approved allotment of 10,000 unsecured, rated, listed, redeemable, NCDs of face value Rs 10 lakh each, for cash aggregating to Rs 1,000 crore, to identified investors on private placement basis.

The issue consists of two separate series of NCDs. Series 'A' consists 5,000 NCDs worth Rs 500 crore with 7.85% per annum floating coupon rate. Series B consists 5,000 NCDs worth Rs 500 crore with 7.95% per anum fixed coupon rate. The NCDs are proposed to be listed on the wholesale debt market segment of BSE.

On a consolidated basis, Tata Steel reported a net loss of Rs 1,130.65 crore in Q3 December 2019 as compared to a net profit of Rs 2,268.58 crore in Q3 December 2018. Net sales fell 8.7% to Rs 34,774.29 crore in Q3 December 2019 over Q3 December 2018.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum (MnTPA). It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.

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