Tata Steel shares fall below follow-on offer price
The portion reserved for anchor investors in the Tata Steel follow-on offering was subscribed fully on Tuesday.
All the 83.25 lakh shares reserved for them were subscribed at Rs 610 a piece, the top end of the price band of Rs 594-610. This makes for a total of Rs 507.8 crore.
Merchant banking sources said that top domestic and foreign institutions made bids. Fidelity, Blackstone, Capital International, Goldman Sachs and Government of Singapore were some of the anchor investors, said a merchant banker. Anchor investors have a reservation of 30 per cent of the shares reserved for the qualified institutional bidders.
“Of the Rs 3,500 crore (planned to be raised), Rs 1,800 crore will be used for the expansion of the facility at Jamshedpur and Rs 1,000 crore will be used to repay debt. A part of the proceeds will be at the company's board discretion to invest in projects there,” said Mr Koushik Chatterjee, Chief Financial Officer at Tata Steel.
Tata Steel shares closed up 1.5 per cent at Rs 632.45 on BSE on Tuesday.
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