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Tata Steel says fund raising report incorrect

Last Updated: Monday, December 14, 2009 - 19:45

Mumbai: Tata Steel denied a newspaper report it was in talks to raise 50 billion rupees ($1.1 billion) in equity and an equal amount in debt, saying its board had not passed any such resolution.
"No such resolution was passed by the board at the Nov. 26 board meeting," a Tata Steel spokesman said by telephone on Monday, saying the report was incorrect.

DNA newspaper, citing sources, had said the world`s eighth-largest steel maker would first dilute equity and then raise debt.

"The method has not been finalised, it`s still on the table, but a non-convertible debentures issue or bond sale would be the preferred route," the paper said.

Last month, Tata Steel said it had a gross debt of $12.9 billion, which it aimed to cut by $2 billion in the medium term.

In November, Tata Steel issued $546.9 million worth of new convertible bonds in exchange for $493 million of securities as part of a plan to reduce costs and ease repayment obligations.

Earlier in the year, it raised $500 million by listing global depositary receipts on the London Stock Exchange.

Bureau Report

First Published: Monday, December 14, 2009 - 19:45

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