Tata Steel Board Approves Rs 2000 Crore NCD Issue

The board of directors of steel major Tata Steel has approved issue of 20,000 fixed rate, unsecured, redeemable non-convertible debentures (NCDs) of face value Rs 10 lakh each aggregating to Rs 2,000 crore on a private placement basis.

The board of directors of the company announced the update at a meeting held on September 14, 2022 and specified that the company's board approved the issue of debt securities in the form of Non-Convertible Debentures ('NCDs').

The NCDs is expected to be issued in two different series. The Series-1 Debentures will consist of 5000 NCDs of face value Rs 10 lakh each aggregating Rs 500 crore. Meanwhile, the Series-2 Debentures will include 15,000 NCDs of face value Rs 10 lakh each aggregating Rs 1500 crore. The NCDs are expected to be listed on the wholesale debt market segment of BSE.

The allotment date of both NCDs is fixed as September 20, 2022.
The NCDs have been rated "AA+" by Indian Ratings and Research and CARE Ratings.

Stock Outlook: The current market price of the Tata Steel is Rs 107.95 apiece with the 52 week high at Rs 147 apiece and 52-week low at Rs 82.71 apiece.

Market Capitalisation: The company has a market capitalisation of Rs 1,31,825.90 crore.

About The Company: Tata Steel was established in India as Asia's first integrated private steel company in 1907. With this, the company also developed India's first industrial city at Jamshedpur. Today, the company is among the leading global steel companies. Its annual crude steel capacity across Indian operations is nearly 20 MnTPA and it registered a turnover of INR 91,037 crore in FY21.

It also set up our second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016; the expansion to 8 MnTPA in currently underway. The company possesses and operates captive mines that help it maintains cost- competitiveness and production efficiencies through an uninterrupted supply of raw material.