Tata Steel board will consider the issuance of unsecured non-convertible debentures (NCDs) on private placement basis of up to Rs 12,000 crore in a meeting to be held on February 26.
The company’s shareholders had given a nod for the same in the annual general meeting (AGM) held on July 20, 2018 and was also approved by the board of directors on August 13, 2018.
While the company has not stated the reasons for the said fund raise, it comes at a time when Tata Steel has picked up stressed asset of Bhushan Steel for about Rs 35,000 crore.
Besides, the acquisition of Usha Martin of around Rs 4,500 crore is underway and the brownfield expansion of 5 million tonne per annum is taking place at Tata Steel’s Kalinganagar plant for enhancing the capacity from 3 million tonnes per annum (MTPA) at present to 8 MTPA. FE