Tata Steel seeks to raise borrowing limit

Tata Steel had reported a higher-than-expected profit for the quarter ended 31 March, as it benefited from an increase in domestic prices and a rebound in European demand for the alloy. Photo: AFP

It also plans a private placement of Rs.14,000 cr worth debt securities in India or abroad 

P.R. Sanjai : Live Mint 17 June 2014

Mumbai: India’s biggest steel maker Tata Steel Ltd on Tuesday said it was planning to increase its borrowing limit from Rs.50,000 to Rs.70,000 crore. It is also planning a private placement of Rs.14,000 crore worth debt securities, convertible into equity or otherwise, in India or abroad. The Tata Group company will seek shareholder approval for both measures.

A Tata Steel filing to the BSE also said it would seek approvals for “creation of charges on the movable and immovable properties of the company in respect of borrowings”.

As on March 31 2014, Tata Steel had a consolidated net debt of Rs.57,119 crore, according to Bloomberg data.

Tata Steel had reported a higher-than-expected profit for the quarter ended 31 March, as it benefited from an increase in domestic prices and a rebound in European demand for the alloy. Tata Steel earned a profit of Rs.1,035.87 crore in the fiscal fourth quarter, compared with a loss of Rs.6,528.51 crore a year ago, on a consolidated basis. Revenue rose 22.5% to Rs.42,428.05 crore fromRs.34,650.47 crore in the same period.

An improvement in the manufacturing sector in Europe, which became Tata Steel’s biggest market after its 2007 purchase of the UK’s Corus Group Plc. for $12.9 billion, helped sales grow at their fastest pace in three quarters.

Tata Steel to raise $4.5-5.5 billion loan to refinance debt

Source: Reuters Sep 08 2010 , Kolkata

Tata Steel, the world's No. 7 steelmaker, is in talks with banks to raise

between $4.5 bn to $5.5 bn loan to refinance debt at its European unit
corus, its managing director said on Wednesday.


"We are in talks with bankers for refinancing our European loans," H.M. Nerurkar told reporters.


The company had said last month it was looking to refinance existing debt based on the extension of the period and flexibility of terms. It had reported net debt of $9.5 bn at the end of the June quarter.
Nerurkar did not name or quantify the banks with which the company was in talks and also did not specify any timeframe.

Last month, Tata Steel lagged market estimates for its June quarter profits and said it expected industry fundamentals to remain cautious in the second half of the 2010/11 financial year.


Tata Steel's European operations account for two-thirds of its global capacity of about 30 mn tonnes, while the Indian operations contribute a quarter. It also has units in South East Asia and Africa.


DENIES SALE IN S AFRICA



Nerurkar denied media reports on Tuesday that Tata Steel was considering selling assets at its South African unit Tata Steel KZN, which it set up in 2006.



"We have no plans whatsoever to sell the South African assets," he told reporters. "We are currently looking at stabilising the operations there and scouting for ferro chrome mines for securing raw material sources."



The South African plant, which has an annual capacity of 150,000 tonnes, produces high carbon ferrochrome and charge chrome.



The company also expects to start work on a greenfield plant at Orissa in eastern India, by October, Nerurkar said.



Tata Steel plans to set up a 6 mn tonnes steel plant at Kalinganagar in Orissa, and has already placed orders for equipment and services for the project.



Shares in Tata Steel pared losses after the news of the fundraising. At 0703 GMT, the stock was trading at 580 rupees, up 0.6 percent in a Mumbai market up 0.2 percent.

Tata Steel in list of world's most admired companies

Source:12 May 2010, 1930 hrs IST,PTI


NEW DELHI: Tata Steel on Wednesday said that Fortune Magazine and management consultant Hay Group have ranked it as one of the world's 10 "most admired" companies this year.

"Tata Steel, this year, has been ranked among the world's top ten of the "Most Admired Company" rated by Fortune Magazine and the Hay Group. The award has been bestowed upon the company in the industry-metal category," Tata Steel said in a statement here.

Tata Steel joins firms like Apple, GE, Singapore Airlines, Alcoa and Thyssen Krupp on the top 10 list, it added.

"The rankings were based on many factors, including innovation, people management, use of corporate assets, financial soundness, long-term investment and global competitiveness," it added.

Tata Steel said that global recognition will "further strengthen" its resolve to ensure the overall development and well-being of its employees.

"We are happy that (we have) been recognised by our peers and analysts in the global ranking of most admired companies," Tata Steel managing director H M Nerurkar said.