Tata Steel appoints investment bankers for Rs 12,800-crore rights issue

Tata Steel Ltd has appointed domestic investment banks to manage its proposed rights issue of about $2 billion (Rs12,800 crore), Mint reported.
 
On 19 December, the steelmaker’s board approved the plan to raise up to Rs 12,800 crore.
 
The company has reportedly appointed Axis Capital, ICICI Securities, Kotak Mahindra Capital and SBI Capital Markets Ltd to manage the $2 billion rights issue.
 
The company is looking to launch the issue as early as January, the report said citing sources.
 
The approval to the rights issue by the board is part of the financing strategy to de-leverage and for general corporate purposes, the email added.
 
As of 30 September, Tata Steel’s gross debt stood at Rs90,259 crore.
 
In its 19 December board meeting, the company also approved an expansion of 5 million tonnes per annum (Mtpa) for its Kalinganagar plant.
 
The proposed expansion will cost the company Rs23,500 crore, which the company plans to fund through a mix of debt and equity.