New Delhi: Tata Steel on Thursday said it has received shareholders' nod to raise up to Rs 10,000 crore through securities to meet capital requirements.
In a BSE filing, the firm said its shareholders approved "further issuance of securities not exceeding Rs 10,000 crore."
On the fund raising, Tata Steel, in its annual report, had said that it seeks to continuously optimise its borrowings by ensuring they are aligned in terms of quantum, risk, maturity and cost with its earnings profile.
Financial markets are very dynamic in nature and it is hard to predict when and which market may provide window of opportunity to the firm to raise cost effective capital that has better terms and can help lengthen the maturity profile, it had said.
The approval comes at a time when the company is also looking at monetising its non-core and listed assets.
While presenting its June quarter results earlier this week, it said in a statement: "Tata Steel continues its strategy of monetising non-core assets and has raised about Rs 1,000 crore during the quarter by selling a part of its equity portfolio."
In an analyst call today, Tata Steel Group Executive Director (Finance and Corporate) Koushik Chatterjee said the company in the last 5-6 years has raised around Rs 15,000 crore through the monetisation of strategic, non-core and listed assets.
The steel maker has reported an over two-fold jump in consolidated net profit to Rs 763 crore in the April-June quarter of 2015-16, helped by strong sales from its Indian operation, cost optimisation and sale of non-core assets.
The Mumbai-based steel giant had posted a net profit of Rs 337.33 crore in the corresponding quarter of last fiscal.
Its consolidated total income, however, fell 17 per cent to Rs 30,300.33 crore during the April-June quarter of this fiscal, from Rs 36,427.21 crore in the same period a year ago.
Tata Steel shares today fell 6.22 per cent to settle at Rs 233.60 apiece on the BSE.
