Tata Steel's Board Approves Rs 3,000 Cr Fundraising Via NCDs

Tata Steel's board of directors has approved a plan to raise up to Rs 3,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. This decision, disclosed to stock exchanges on 29 May, comes after a thorough review of the company's financing strategy.

As of 31 March 2024, Tata Steel's net debt stands at Rs 77,550 crore. Despite this, the company highlighted its strong liquidity position, with group liquidity at Rs 31,767 crore, including cash and cash equivalents of Rs 9,532 crore.

"Our group liquidity remains strong at Rs 31,767 crores, which includes cash & cash equivalents of Rs 9,532 crores," the company stated in a press release.

Tata Steel reported a significant 64 per cent decline in fourth-quarter profit, attributable to owners, amounting to Rs 611.48 crore. This drop is attributed to lower steel realisations and underperformance in the company's international operations. Consolidated revenue from operations for the January-March quarter fell by 6.7 per cent to Rs 58,687.3 crore.

On a sequential basis, however, there was a positive trend, with consolidated revenue from operations increasing by six per cent from Rs 55,311.88 crore in the previous quarter, and net profit rising by 19 per cent from the previous quarter.

Additionally, the board approved a significant investment proposal to infuse up to USD 2.11 billion (Rs 17,407.50 crore) into its wholly-owned subsidiary, T Steel Holdings (TSHP) Singapore. This infusion aims to repay debt and support restructuring costs at Tata Steel UK.