Tata Steel to raise $2.5 bn for funding Corus buy
Tata Steel, which acquired Anglo-Dutch steel maker Corus in January, will raise over Rs 10,000 crore ($2.5 billion) through issue of securities in domestic and overseas market to part finance the acquisition.
The company, in a notice to shareholders, said it would come out with a rights issue of ordinary shares and cumulative convertible preference (CCP) shares, besides issue of securities in the domestic or international markets.
While the company plans to raise Rs 3,655 crore through the rights issue, another Rs 4,350 crore would be raised through issue of CCP shares. Existing shareholders would get one share at a price of Rs 300 for every five ordinary shares held.
It would also raise additional funds up to to $500 million (Rs 2,042 crore) from the domestic and international markets.
Tata Steel said to facilitate issue of CCP shares, the authorised share capital would have to be raised from Rs 2,000 crore to Rs 8,000 crore.
Tata Steel had paid $4.1 billion toward acquisition of Corus that was valued at $12.9 billion.