Tata Steel Ltd.'s board on Tuesday approved raising Rs 2,700 crore through the issue of unsecured non-convertible debentures maturing in three years on a private placement basis.
The board on Tuesday approved the issue of 2.70 lakh NCDs with a face value of Rs 1 lakh each, according to an exchange filing. The NCD maturing on March 26, 2027, will be allotted to eligible investors on March 27, 2024, the company said in the filing.
The coupon will be paid annually, with the principal amount to be redeemed through bullet repayment by the end of three years, the filing said.
The 'AA+'-rated NCD by India Ratings and Care Ratings will be listed in the wholesale debt market segment of the BSE.
Shares of Tata Steel fell as much as 0.30% to Rs 149.25 apiece as of 2:49 p.m. This compares to a 0.94% decline in the NSE Nifty 50 Index.
The stock has risen 42.82% in the last 12 months. Total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 55.
Out of 31 analysts tracking the company, 18 maintain a 'buy' rating, six recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 44.5%.
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