Tata Steel NCDs: The Board of Directors of Tata Steel has approved raising of Rs 2,000 crore through issuance of non-convertible debentures (NCDs), said the company in a regulatory filing on Wednesday.
“The Committee of Directors (constituted by the Board of Directors of Tata Steel Limited), at its meeting held today i.e., September 14, 2022, approved the issue of debt securities in the form of Non-Convertible Debentures (‘NCDs’),” read a company statement on the BSE.
Tata Steel Fund Raising
As per the laid out terms and conditions, the Rs 2000 crore funding will be raised in two series. In series one, 5,000 NCDs of face value Rs 10,00,000 each will be issued to raise an amount aggregating Rs 500 crore.
The date of allotment for first series is September 20, 2022 and its date of maturity is September 20, 2027.
While, under the second series, 15,000 NCDs of face value Rs 10,00,000 each will be issued to raise another Rs 1,500 crore. Its allotment date is also September 20, 2022, maturity date is September 20, 2032.
Meanwhile, shares of steel major dropped around two per cent amid weak market conditions. Tata Steel share price dropped to Rs 107.10 per share in BSE intraday trade on Thursday.
Tata Steel Stock Split
Earlier, Tata Steel had split its share in the ratio of 1:10, meaning eligible shareholders were awarded 10 shares for each share they owned and the price was adjusted accordingly.
Stock split is a corporate action undertaken by a listed company to increase the number of shares that are outstanding by issuing more shares to the current shareholders. The market price of that is adjusted in proportion to the split ratio.