Tata Steel BSL Ltd, formerly Bhushan Steel Ltd, said Wednesday its board has approved a proposal to raise up to ?24,000 crore through an issue of preference shares to Tata Steel Ltd on private placement basis. Tata Steel last year acquired Bhushan Steel through its wholly-owned subsidiary Bamnipal Steel Ltd.
“The board at its meeting held today considered and approved issuance of non-convertible redeemable preference shares (NCRPS) to Tata Steel Limited, on a private placement basis for an amount not exceeding to ?12,000 crore in accordance with applicable laws and regulations, and/or (b) Issuance of non-cumulative optionally convertible redeemable preference (Issue of OCRPS) of up to ?12,000 crore on a private placement basis to Tata Steel Limited in accordance with applicable laws, regulations, consents, approvals (as required)”, Tata Steel BSL said in a filing to BSE.
For the purpose of giving effect to the above issuance of NCRPS and/or OCRPS, the company said, the board has authorised a committee of the board to decide on the terms and conditions of the issue including the type of security, issue price, timing of the issue and other related matters.
On Wednesday, Tata Steel BSL shares fell 3% to ?35.55 apiece on the BSE while parent Tata Steel’s stock declined 2.44% to ?479.35. The benchmark Sensex ended the day 0.64% higher at 36,212.91 points.