Tata Steel, the largest Indian producer, has once again planned to tap the global depository receipt (GDR) market for raising at least $500 million (Rs 2,300 crore). The money is to be raised within the next two quarters, to capitalise the balance sheet.
The company had raised $500 million about eight months ago, which was used to expand its
Tata Steel had gross debt of $12.9 billion (Rs 58,500 crore) in the quarter ended December 31. It accumulated most of this with the acquisition of Anglo-Dutch steel maker Corus, for $12.1 billion in 2007. This was the largest acquisition abroad made by any Indian company. It now plans to reduce the gross debt by $2 billion (Rs 9,000 crore) in multiple tranches over the next two years.
Last year in August, the company took an enabling resolution to raise up to Rs 5,000 crore through equity issuances. However, it had not given any timeline or preferred mode for issuance. GDR is going to be the preferred mode, as the company’s depository receipts are already listed on the London Stock Exchange.
Citigroup Global Markets, Goldman Sachs International, JP Morgan Securities and UBS were the banks acting as joint lead managers and joint book runners for the issue in July, which saw the listing of the company’s GDRs on the LSE.
crackcrack| Company Name | CMP |
|---|---|
| Tata Steel | 212.05 |
| JSW Steel | 1239.90 |
| SAIL | 173.50 |
| Jindal Stainless | 787.90 |
| APL Apollo Tubes | 2105.45 |
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