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Tata Steel Limited (TTST)

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Tuesday 19 December, 2017

Tata Steel Limited

Announcement re: Rights Issue

RNS Number : 8023Z
Tata Steel Limited
19 December 2017
 

 

 

 

December 19, 2017

 

 

London Stock Exchange,

London


                                                                                                                     

Dear Sirs,

 

Subject: Outcome of the meeting of the Board of Directors of Tata Steel Limited (the "Company") held on December 18, 2017 and December 19, 2017

 

The Board of Directors of the Company ("Board") at its meeting held on December 18, 2017 and December 19, 2017 reviewed the long term strategy of the Company including organic and inorganic growth opportunities. Based on the above review, the Board of Directors of the Company considered and approved the following:

 

 

1.   Following the successful implementation of the Phase I of the Kalinganagar Project in Odisha, the Board today approved the next phase of expansion of capacity in Kalinganagar by 5 million tons per annum from 3 MTPA to 8 MTPA. The total capacity of  Tata Steel India operations following the above expansion will be 18 million tons per annum. The project will cost the company Rs 23,500 crore and will be completed within 48 months. The project configuration and costs includes investments in raw material capacity expansion, upstream and midstream facilities, infrastructure and downstream facilities including a cold rolling mill complex. The details of the proposed expansion are disclosed as hereunder:

 

Sr. No.

Particulars

Details

1

Existing capacity

1 MTPA

2

Existing capacity utilization

98 %

3

Proposed capacity addition

5 MTPA

4

Period within which the proposed capacity is to be added

48 months form the date of commencement of construction

5

Investment required

Rs. 23,500 crore

6

Mode of Financing

Through a combination of debt and equity

7

Rationale

To meet the requirements of automotive, general engineering and other value added segments

 

 

 

2.   The Board of the company also reviewed the financial strategy of the company in the light of the organic and inorganic growth strategy of the company and approved the financial plan to raise capital for the above which will also be deployed for de-leveraging the Balance Sheet and general corporate purposes. Based on the above, the Board approved the issuance of equity and equity linked instruments including ordinary shares of the Company ("Equity Shares") by way of a rights issue to the existing shareholders of the Company on the record date for an amount not exceeding Rs.12,800 crore in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended and other applicable laws (the "Issue").

 

Further, for the purpose of giving effect to the Issue, the Board authorized the Executive Committee of the Board to decide the structure, terms and conditions of the Issue including the instrument options, rights entitlement ratio, issue price, record date, timing of the Issue and other related matters.

 

The Board meeting was held on December 18, 2017 from 2:30 p.m to 5:30 pm and continued on December 19, 2017 from 9:00 am to 3.00 pm.

 

This intimation is issued in terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

 

We request you to kindly take this on record.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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