Tata Steel looks to raise Rs 5k crore to part-fund capex
Tata Steel is looking to raise Rs 5,000 crore through issuing securities to part fund its capital expenditure, acquisitions and debt-reduction, among others.
New Delhi: Tata Steel is looking to raise Rs 5,000 crore through issuing securities to part fund its capital expenditure, acquisitions and debt-reduction, among
The steel maker will seek shareholders` nod for the same at its Annual General Meeting scheduled later this month.
"The company intends to raise additional long-term
finance by issue of securities in the domestic/international
markets and utilise the proceed for capital expenditure,
repayment of indebtedness, acquistions...," Tata Steel said in
its Annual Report.
"The proposed resolution...seeks the enabling
authorisation of the members to the Board of Directors, to
raise additional funds...including by way of depository
receipts for an amount not exceeding Rs 5,000 crore," it said.
On August 5, Tata Steel Managing Director B Muthuraman
said that as and when it is required, the company may hit the
market to raise funds.
Last month, the company had raised USD 500 million (about
Rs 2,400 crore) by issuing Global Depository Receipts (GDR) on
the London Stock Exchange and said the fund would be mainly
utilised to fund project expansion.
The company plans to take its annual production capacity
to 16 million tonnes by 2014 at an estimated investment of
about Rs 40,000 crore. The company has a capacity of 6.8
million tonnes per annum (MTPA) in Jamshedpur which it plans
to take to 10 MTPA by mid-2011.