Tata Steel is likely to launch a rights issue of nearly Rs 3,500 crore to part-finance its $12.15 billion acquisition of Anglo-Dutch steelmaker Corus Group, payment for which is to be made tomorrow. The issue may be priced at around Rs 400 a share, against today’s close of Rs 495.55 on the Bombay Stock Exchange.
Sources close to the situation said the Tata Steel board is slated to discuss the issue at its meeting on April 17. The proportion of the issue — how many rights shares to be given against existing shares—could not be ascertained. When contacted, a Tata Steel spokesperson declined comment.
The Tata Steel stock has risen 16.84 per cent in the past one week, anticipating such a move from the company. The BSE Sensex has risen 4.5 per cent in the period. In the past one month, the stock has gone up by 14.23 per cent, against the Sensex’s rise of 2.2 per cent.
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