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Tata Steel to raise $500m via GDRs

Date: 03-07-2009

Tata Steel, India's largest integrated private steel maker has decided to raise $500 million via global depository receipts (GDRs). A company official confirmed the news as a 'fresh development' taken place less than 48 hours ago. Citigroup and JP Morgan are the arrangers for the deal.

 

According to the sources, the funds raised will be used for the 2.9 million tonne expansion plan currently underway at the Jamshedpur plant. Tata Steel needs another Rs 9,000 crore for the 2.9 mtpa expansion. Funds for this phase haven't been tied up till now.

 

The company's flagship plant earlier had a capacity of 5 mtpa, which was raised to 6.8 mtpa in October last year. Tata Steel said the Jamshedpur expansion is a high priority project and will be completed by December 2010.crackcrack