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Tata Steel to raise $2.5 bn to fund Corus buy

Tata Steel to raise $2.5 bn to fund Corus buy
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First Published: Thu, Jul 12 2007. 05 12 PM IST
Updated: Thu, Jul 12 2007. 05 12 PM IST
PTI
Kolkata: Tata Steel, which acquired Anglo-Dutch steel maker Corus in January, will raise over Rs10,000 crore ($2.5 billion) through issue of securities in domestic and overseas market to part finance the acquisition.
The company, in a notice to shareholders, said it would come out with a rights issue of ordinary shares and cumulative convertible preference (CCP) shares, besides issue of securities in the domestic or international markets.
While the company plans to raise Rs3,655 crore through the rights issue, another Rs4,350 crore would be raised through issue of CCP shares. Existing shareholders would get one share at Rs300 for every five ordinary shares held.
It would also raise additional funds up to to $500 million (Rs2,042 crore) from the domestic and international markets.
Tata Steel said to facilitate issue of CCP shares, the authorised share capital would have to be raised from Rs2,000 crore to Rs8,000 crore.
Tata Steel had paid $4.1 billion towards the $12.9 billion acquisition of Corus.
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First Published: Thu, Jul 12 2007. 05 12 PM IST
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