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Tata Steel plans to raise ₹2,150 crore by issuing unsecured non-convertible debentures for five years, largely to repay old debts and fund ongoing capacity expansion.
The company will issue 2.15 lakh NCDs with face value of ₹1 lakh each, it said in a statement.
The allotment will be on Monday and the NCDs will mature on February 25, 2028.
The fixed rate coupon will be based on the bidding at the electronic book provider (EBP) platform of BSE and will be paid annually. The bidding on the EBP can be on the basis of uniform yield/multiple yield allotment, the company added.
The bullet payment of principal will be at the end of the five-year tenure, it said.
The issue has been rated “AA+” by India Ratings and Research and CARE Ratings.
The company’s gross debt was flat at ₹87,649 crore. It had a cash balance of ₹15,943 crore, leading to net debt of ₹71,706 crore as of December-end.
Tata Steel reported a net loss of ₹2,502 crore in the December quarter against a net profit of ₹9,598 crore in the same period last year, owing to lower realisation and higher inventory in Europe.
Overall costs increased to ₹57,172 crore (₹48,666 crore).
The company’s revenue from operations slipped 6 per cent to ₹57,084 crore in the December quarter against ₹60,783 crore in Q3FY22.
EBITDA was down 83 per cent at ₹2,727 crore during the quarter, against ₹15,890 crore in the same period last year, largely due to margin compression in Europe.
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