Tata Steel to raise Rs 2150 crore through debentures

22 Feb 2023 , 11:11 AM

Tata Steel’s board has approved to raise Rs 2150 crore through issuing unsecured non-convertible debentures (NCDs) on a private placement basis. These debentures will list on the Wholesale Debt Market Segment of Bombay Stock Exchange (BSE).

The fixed rate, unsecured, redeemable, rated, listed NCDs having face value of Rs 1 lakh each aggregating to Rs 2,150 crore, will be allotted on 27 February 2023 and will mature on 25 February 2028.

The NCDs received credit rating of ‘AA+’ by India Ratings and Research (India Ratings) and ‘AA+’ by CARE Ratings.

As of December quarter end, the company’s gross debt was flat at Rs 87,649 crore. It had a cash balance of Rs 15,943 crore, leading to net debt of Rs 71,706 crore.

Tata Steel reported a net loss of Rs 2,502 crore in the December quarter against a net profit of Rs 9,598 crore in the same period last year, owing to lower realisation and higher inventory in Europe.

Its revenue from operations slipped 6% to Rs 57,084 crore in the December quarter against Rs 60,783 crore in Q3FY22.