New Delhi, July 21 (Inditop.com) India’s leading private steel producer Tata Steel will make one of India’s biggest offers for global depository receipts in recent years, hoping to raise $500 million to fund its expansion in the country and for its London-headquartered Anglo-Dutch arm Corus.
The company’s board has approved the issue of 65,410,589 receipts for $7.64 each, representing one ordinary share of Tata Steel.
“The GDR offering has attracted demand from very good quality investors which enabled the company to increase the offering size from $400 million to $500 million – being one of the largest GDR offerings by any Indian company on the London Stock Exchange,” said Tata group chief financial officer Koushik Chatterjee in a statement.
“Though the company has adequate liquidity with no material repayments in the next 12 months, the equity raising exercise will help in capitalising the balance sheet and enable deployment in highly attractive projects – like the ongoing expansion of Jamshedpur (project) in India and overseas mining projects,” added Chatterjee.
Citi Group Global Markets, Goldman Sachs International, JP Morgan Securities and UBS will be the joint lead Managers and joint bookrunners to the issue.
The GDRs will be listed on the Professional Securities Market of the London Stock Exchange.
