Comments
Tata Steel’s bid to raise ₹670 crore through issue of non-convertible debentures on a private placement bases has been approved.
In a notice to the stock exchange, Tata Steel said that its committee of directors has on Friday approved allotment of 6,700 — or 7.70 per cent — unsecured, redeemable, rated, listed non-convertible debentures with face value of ₹10,00,000 each, for cash aggregating to ₹670 crore.
The debentures have been allotted to identified investors on private placement basis, on terms and conditions as mentioned in the information memorandum for the said issue, it added.
The NCDs are proposed to be listed on the wholesale debt market segment of BSE Ltd.
Steel under pressure
Steel prices globally have come under huge pressure due to weak demand on back of the coronavirus outbreak.
However, steel companies in India have hiked hot-rolled coil prices six times in last five months, with two consecutive hikes in January. Meanwhile, long steel prices used largely in infrastructure projects have come under pressure.
Manoj Jain, Director, IndiaNivesh, said long steel for April delivery on the Indian Commodity Exchange hit 4 per cent lower circuit on Thursday after a meltdown in global equities and heavy sell-off in domestic equity market.
Steel prices slipped below the ₹30,000-mark at the ICEX, and demand could be subdued in coming months as the fear of Covid-19 spreads in India.
Shares of Tata Steel, which plunged to new 52-week low levels, traded higher by 7 per cent at ₹307.65 at 1 pm on Friday.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.