NEW DELHI: Shares of Tata Steel climbed over 1 per cent in morning trade on Wednesday, a day after its board approved the issuance of debt securities worth Rs 5,000 crore.However, the scrip cooled off and traded almost flat at Rs 504.40 on BSE around 12 pm.
The Tata Steel board on Tuesday had approved the company's decision to issue debt securities worth Rs 5,000 crore, comprising unsecured non-convertible debentures (NCDs) of up to Rs 4,000 crore plus a green shoe option of Rs 1,000 crore, on a private placement basis.Tata Steel proposes to issue a total of 40,000 NCDs of face value Rs 10 lakh each, aggregating Rs 4,000 crore, plus a green shoe option of Rs 1,000 crore.
The move comes at a time when Tata Steel is integrating its Rs 35,200-crore acquisition of stressed asset Bhushan Steel, acquiring Usha Martins steel business for Rs 4,500 crore, and expanding its three million tonne (mt) Kalinganagar plant in Odisha by adding another 5 mt capacity by 2022, an ET report said.