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Tata Sponge To Raise INR 1,800 Crore Via Rights Issue

Steel News - Published on Mon, 17 Jun 2019

Image Source: CNBC TV18
ET reported that Tata Sponge Iron, a subsidiary of Tata Steel, is planning to raise up to INR 1,800 crore through a rights issue to primarily retire existing debt early, said two people familiar with the matter. The company had raised debt to help fund its acquisition of the steel business of debt-ridden Usha Martin.

The board meet on Thursday to consider the terms of the right issue, including the rights entitlement ratio, total number of shares to be issued, issue price and record date. It has already obtained approval from stock exchanges for the proposed rights issue.

Tata Sponge Iron is expected to price the rights issue at about 20-25% discount to the current market price: one of the persons cited above told ET. Axis Capital SBI Cap, Centrum Capital are helping the company to run the issuance. Individual arrangers could not be contacted immediately for comments.

Source :

Posted By : Sanju Moirangthem on Mon, 17 Jun 2019
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