Tata Steel on Friday announced the allotment of non convertible debentures (NCDs) worth Rs 1,025 crore on a private placement basis.
Earlier this month, the steel major had said that it will raise up to Rs 7,000 crore through unsecured and redeemable NCDs that will be listed. The issuances will be private placements to eligible investors.
The plan was to issue up to 70,000 NCDs of face value of Rs 10,00,000 each in one or more tranches. The first issue was to be up to Rs 1,000 crore along with a green shoe option to allot additional NCDs up to the same amount.
However, the subsequent issuances will have a different base size, with or without a green shoe option, the company had said.
The debentures will be listed on the wholesale debt market segment of the BSE.
Shares of Tata Steel on Friday ended at Rs 293.30 — a gain of Rs 4.70, or 1.63 per cent, over the last close.
Reliance NCDs
Reliance Industries has mopped up Rs 8,500 crore from the sale of NCDs, pricing it at 7.20 per cent. The RIL offer gives a 280 bps premium on the repo rate.
“RIL has mopped up Rs 8,500 crore from an NCD issue on Friday. The issue consists of a three-year fixed tenor tranche of Rs 4,000 crore, offering a 7.20 per cent coupon, and a Rs 4,500-crore floating rate tranche, which is also a 280-bps spread over the repo rate,” a market source said.
