News Digest

21 December 2017
Tata Steel board approves rights issue to raise Rs

Tata Steel Ltd on Tuesday said its board had approved a Rs23,500-crore capital expenditure plan to expand the capacity of its Kalinganagar facility by 5 million tonnes per annum (MTPA) to 8 MTPA. The board also approved a rights issue of Rs12,800 crore, parts of which would fund this expansion. The company said that the Kalinganagar plant's expansion will be completed in four years and is expected to meet demand in automotive, general engineering and other valued-added segments. It said that the project will be funded through a mix of both debt and equity. Tata Steel had a debt of Rs90,259 crore at the end of September. Its debt-to-equity ratio stood at 2.8. The company's focus has turned to the Indian market as steel demand improves and the government embarks on an ambitious infrastructure building programme, including spending Rs 7 trillion on roads.

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