Mumbai: Tata Steel Ltd and Suzlon Energy Ltd on Monday opened sales of shares to international investors. Tata Steel is expected to raise at least $500 million , while Suzlon Energy will raise up to $175 million.
Senior officials from both the companies declined comment, saying they could not speak on the matter in view of the quiet period before the issue opens. The fundraising programme initiated by the two companies was expected to close on Monday evening in overseas markets. The move to raise funds from overseas investors comes on the heels of Sterlite Industries (India) Ltd last week raising $1.5 billion from a sale of shares in the US markets.
In a 6 July research report, Rakesh Arora and Sanjay Doshi of Macquarie
Research Equities had said: “ We estimate that Tata Steel needs some equity funding, and with the business environment improving, the likelihood of better valuation is high, in our view.”
A Monday report by Kotak Institutional Equities said, “(Suzlon) management highlighted that both equity issuance as well as Hansen stake sale are possibilities on the table and may be exercised to reduce debt levels as well as have flexibility in cash flows.”