Tata Steel Tuesday said its board has approved plans to raise ₹4,000 crore through issuance of non-convertible debentures on a private placement basis.
In addition, the company’s board also approved a greenshoe option of ₹1,000 crore, the company said in a regulatory filing.
The committee of directors approved issuance of “40,000 NCDs of face value ₹10,00,000 each aggregating to ₹4,000 crore plus a greenshoe option of up to ₹1,000 crore,” the company said.
The securities would be “unsecured, redeemable, rated, listed, non convertible debentures (NCDs)” to be issued on a private placement basis, it said. The date of allotment has been fixed as March 1, 2019, while the date of maturity would be March 1, 2034, it said.
Shares of the company today ended 0.14 per cent down at ₹504.15 apiece on BSE.
Tata Steel is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum (MTPA). It is one of the world’s most geographically-diversified steel producers.