Tata Steel mops up additional $150 m
A DAY after it announced the issue of $725 million offering of foreign currency convertible alternative reference securities (CARS), Tata Steel on Tuesday said that it has raised $150 million more by selling additional securities through the greenshoe option. The total offering now goes up to $875 million. This is part of the $7.4-billion equity contribution to finance the Corus deal, valued at $13.7 billion, including debts. The equity part, which was earlier raised by $700 million from $ 6.7 billion, is being raised by Tata Steel and its Singapore-based subsidiary Tata Steel Asia. The company’ stock was down 1.1% at Rs 642.6 on the BSE on Tuesday. The metal index was down 0.8%. Apart from the money raised through CARS, the country’s largest steelmaker is also expected to make a foreign issue of $500 million. The increased equity infusion also includes convertible rights issue of Rs 6,000 crore, which is about Rs 1,750 crore more than the earlier allocation.