Tata Steel to raise ₹3000 crore via issuance of NCDs through private placement | Stock Market News
Tata Steel board at its meeting held today, February 14, considered and approved fundraising via non-convertible debentures.
Tata Steel plans to raise ₹3,000 crore via issuance of 3,00,000 NCDs of ₹1,00,000 each. The NCDs, it said, will be issued to eligible investors on a private placement basis.
The tentative date of allotment of the NCD issue is February 21, 2025, while the date of maturity is February 21, 2030. These NCDs are proposed to be listed on the wholesale debt market segment of BSE. The credit ratings assigned to the bonds are ‘AAA’ by India Ratings and ‘AA+’ by CARE Ratings Limited, as per the exchange filing by Tata Steel.
Recently, India Ratings upgraded the bonds of the blue-chip steel company to the highest grade of AAA from AA with a stable outlook.
“The upgrade reflects the likelihood of reduced losses at Tata Steel’s UK operations over FY26-FY27 and eventual profitability. Tata Steel successfully shut down both its blast furnaces in the UK in September 2024. As per management, the UK assets are likely to break even in 2HFY26,” the rating agency said. Any higher-than-expected capex at the UK assets however will be a key monitorable, it added.
The ratings also factor in the strategic linkages between TSL and its sponsor, Tata Sons Private Limited and the strong financial flexibility of Tata Sons, India Ratings said.
According to a Reuters report, the company has outstanding bonds worth more than ₹12800 crore, of which ₹670 crore of debt is due to mature next month.
Share Price Movement
Despite the fundraising news, shares of Tata Steel ended the day 1.32% lower on the BSE at ₹134.40 apiece.
The stock opened at ₹136.20, same as its previous close. During the day, it hit a high of ₹139.20 and a low of ₹133.35 apiece.
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