Tata Steel is considering raising around Rs 4,000 crore through an issue of non-fungible GDRs to part-finance its acquisition of the Anglo-Dutch steelmaker Corus.
According to merchant banking sources, the company has started discussions with institutional investors on the prospect of launching the instrument. The company, they said, will take a call after receiving feedbacks from likely buyers.
The equity portion of the issue raised around Rs 3,700 crore while the preference offer mopped up Rs 6,000 crore. The preference shares will be converted into equity on September 1, 2009. The company’s equity capital has been enhanced by 20% due to the equity portion of the rights issue and it would go up by 35%, post conversion of preference shares.
Read more in
The Economic Times article.
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