Tata Steel Ltd.'s board of directors approved the issue of 3 lakh non-convertible debentures of a face value of Rs 1 lakh each, aggregating Rs 3,000 crore, according to an exchange filing on Friday.
The fixed rate, unsecured, redeemable, rated and listed NCDs will be listed in the wholesale debt market segment of the BSE. It will be eligible investors on a private placement basis.
Their tentative date of allotment is Feb. 21, 2025, and the tentative date of maturity is Feb. 21, 2030. The NCDs have a credit rating of 'AAA' by India Ratings and 'AA+' by Care Ratings Ltd.
The bidding will be on a fixed rate coupon basis at the electronic book provider platform of the BSE. The bidding on EBP can be on multiple yield allotment basis.
The payment will be scheduled on the basis of annual interest payment. The scheduled payment of principal will be bullet repayment at the end of maturity payment. The bullet repayment will take place at the end of five years from the date of allotment.
Tata Steel's net profit for the quarter ended Dec. 31, 2024, fell by 36% to Rs 327 crore compared to Rs 513 crore in the same period last year. Despite the decline, the company beat analysts' estimates of a loss of Rs 300 crore.
Shares of Tata Steel closed 1.64% lower at Rs 134.02 per share, compared to a 0.56% decline in the benchmark Nifty. The share price has fallen 5.08% on a 12-month basis.
Twenty-one out of the 35 analysts tracking the company have a 'buy' rating on the stock, eight suggest 'hold' and six recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 10.4%.
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