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Tata Steel to raise Rs 7,000 cr, net at Rs 1,979-cr

The company will decide about fund-raising after shareholder approvals by means of postal ballot, which may take 45-50 days and the market conditions.

twitter-logo PTI   Mumbai     Last Updated: November 15, 2010  | 13:08 IST

India's leading steel producer Tata Steel has decided to raise Rs 7,000-crore to fund its capex plan, even as it registered a consolidated net profit of Rs 1,979-crore in the second quarter of 2010-11.

"The company has decided to seek the approval of the shareholders to raise additional long-term resources of Rs 7,000-crore either through issue of securities, including ordinary shares, equity shares, GDRs, debentures or through foreign currency," Chief Financial Officer Koushik Chatterjee told reporters here.

It has also decided to increase its authorised capital to Rs 8,350-crore from existing Rs 8,000-crore.

The company will decide about fund-raising after shareholder approvals by means of postal ballot, which may take 45-50 days and the market conditions, Chatterjee said, adding the funds will be used to finance the expansion of value-added products in Europe.

Meanwhile, Tata Steel on Friday reported a net profit of Rs 1,978.81-crore for the second quarter, compared to a loss of Rs 2,707.25-crore during the same period last year.

The consolidated net sales of the global steel major was Rs 28,090.91-crore in the quarter under review, a growth of over 11 per cent compared to Rs 25,276.14-crore it had reported for the quarter ended September 30, last year.

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