Tata Steel on Friday (24 April) said its board has approved proposal to raise up to Rs 5,000 crore through issuance of non convertible debentures (NCDs) on private placement basis.
The board of directors of Tata Steel at its meeting held on Friday, 24 April 2020, reviewed the financing plan of the company and approved issue of additional debt securities up to Rs 5,000 crore in the form of non-convertible debentures (NCDs) on private placement basis in one or more tranches.The funds from the issue will be primarily deployed towards repayment of debt and general corporate purposes. Further, the board also authorized a committee of directors to determine and approve the quantum, timing and terms & conditions of the NCDs.
The above issue is in addition to the limit of debt securities up to Rs 12,000 crore, approved by the board earlier, at its meeting held on 13 August 2018.
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 fell 0.94% to close at Rs 267.80 in yesterday's session. Meanwhile, the S&P BSE Sensex closed 535.86 points or 1.68% lower at 31,327.22.
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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