Domestic steel maker Tata Steel said its committee of directors decided has approved raising ₹2,000 crore through allotment of non-convertible debentures (NCDs) on a private placement basis.
In a filing to the BSE, the company said the committee has approved the issue of debt securities in the form of NCDs. “20,000 NCDs of face value ₹10,00,000 each aggregating to ₹2,000 crore, to be issued in two different series (Series 1 Debenture aggregating to ₹500 crore and Series 2 Debenture aggregating to ₹1,500 crore).”
The issue is divided into two series, Tata Steel said.
Size of the issue
The issue is divided into two series:
Series 1 Debenture: 5,000 NCDs of face value ₹10,00,000 each aggregating ₹500 crore.
Series 2 Debenture: 15,000 NCDs of face value ₹10,00,000 each aggregating ₹1,500 crore
In series one, 5,000 NCDs of face value ₹10,00,000 each will be issued to raise an amount aggregating ₹500 crore.
The date date of allotment for first series is September 20, 2022 and its date of maturity is September 20, 2027.
While, under the second series, 15,000 NCDs of face value ₹10,00,000 each will be issued to raise another ₹1,500 crore. Its allotment date is also September 20, 2022, maturity date is September 20, 2032.
The NCDs were rated AA+ by India Ratings and CARE Ratings.
The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) Segment of BSE Limited.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.
On a consolidated basis, the steel major’s net profit dropped 12.83% to ₹7,764.96 crore for the quarter ending 30 June, 2022. On a sequential basis, the PAT witnessed a decline of 20.4% from ₹9,756 crore achieved during the January – March quarter.
Shares of Tata Steel climbed 1.25% to ₹109.10 on Wednesday, 14 September 2022.
