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Updated: October 15, 2009 18:48 IST

Tata Steel gets shareholders nod to raise Rs 5,000 cr

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A file picture of Mr. Ratan Tata. Photo: PTI
A file picture of Mr. Ratan Tata. Photo: PTI

Tata Steel on Thursday said that it would raise Rs 5,000 crore through issue of securities in the domestic market.

The company in a filing to the Bombay Stock Exchange said shareholders at the annual general meeting held in August had approved the issuance of securities, including non-convertible debentures, shares or by way of depository receipts to eligible investors.

Earlier in August, the company had said it “intends to raise additional long—term finance by issue of securities in the domestic or international markets and utilise the proceeds for capital expenditure, repayment of indebtedness, acquisitions...”

In July, the company had raised $500 million (about Rs 2,400 crore) by issuing Global Depository Receipts (GDR) on the London Stock Exchange and said the fund would be mainly utilised for project expansion.

The company plans to take its annual production capacity to 16 million tonnes by 2014 at an estimated investment of about Rs 40,000 crore. The company has a capacity of 6.8 million tonnes per annum (MTPA) in Jamshedpur which it plans to take to 10 MTPA by mid-2011.

Shares of Tata Steel closed at Rs 574.75, up 0.56 per cent on the BSE.

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