Tata Steel Shares Outperform On Rs 1,000 Crore Fund-Raising

Tata Steel shares rose as much as 1.7 per cent today to Rs 397.9, before ending flat at Rs 390.70. In comparison, the Nifty ended 0.30 per cent lower today. Tata Steel after market hours yesterday informed that it has raised Rs 1,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

The debentures carry an interest rate of 8.15 per cent and are redeemable and unsecured in nature.

Tata Steel said "the committee of directors on October 04, 2016 allotted non-convertible debentures having a face value of Rs 10 lakh each for cash aggregating to Rs 1,000 crore, on a private placement basis, to certain identified investors."

Tata Steel Ltd reported a consolidated first quarter net loss of Rs 3,183 crore ($477 million) as it sold a business in Europe, and said talks continued for a proposed partnership to run its European plants.

Consolidated net loss widened for the three months to June 30, from Rs 317 crore loss a year earlier.

Meanwhile, government extended floor price for imports of steel products for a further two months late on Tuesday as it tries to protect the domestic industry from cheap overseas shipments, especially from China.

The floor price, or the minimum import price, was introduced for six months in February, the first time the government had taken such a step in more than 15 years. It was extended from its initial expiry in August to October 4.