Tata Steel Raises INR 1,000 Crore Via NCDs

Tata Steel informed the BSE after market hours that it has raised Rs 1,000 crore by issuing NCDs (non-convertible debentures) on a private placement basis.

The debentures carry an interest rate of 8.15 per cent and are unsecured and redeemable in nature.

“The committee of directors on October 04, 2016 allotted non-convertible debentures having a face value of INR 10 lakh each for cash aggregating to INR 1,000 crore, on a private placement basis, to certain identified investors,” Tata Steel said.

Tata Steel Ltd reported a strengthened first quarter net loss of INR 3,183 crore (USD 477 million) when it sold a business in Europe, and said talks continued for a proposed partnership to run its European plants.

Meanwhile, the government has extended floor price for imports of steel products for a further two months as it tries to protect the domestic industry from cheap overseas shipments, especially from China.

For the first time the government had taken such a step in more than 15 years when it introduced the minimum import price, or the floor price in February. It’s initial expiry was extended in August to October 4.

Shares of Tata Steel were trading 0.6 percent higher at INR 393.50 after the news hit in the market.