Shares of India's blue-chip steel maker, Tata Steel dropped nearly by 2.5% on Wednesday even as the board of Tata Steel has approved Rs 12,800 crore fundraising via the rights issue of equity shares.
Shares of India’s blue-chip steel maker, Tata Steel dropped nearly by 2.5% on Wednesday even as the board of Tata Steel has approved Rs 12,800 crore fundraising via the rights issue of equity shares. The stock of Tata Steel opened 1.08% higher at Rs 718, which was its day’s high price also. But in a quick session of early morning trades, Tata Steel fell as much as 2.48% to the day’s low of Rs 692.65 on BSE. Tata Steel’s board has also decided to expand the capacity of Kalinganagar plant by 5 million tonne per annum (MTPA) to 8 MTPA with an investment of Rs 23,500 crore. Amid the heavy trading volumes in the shares of Tata Steel, more than 41 lakh shares exchanged hands on both BSE and NSE with about 40 lakh shares on NSE alone.
Tata Steel’s board also reviewed the financial strategy of the company in the light of organic and inorganic growth strategy of the company and approved financial plan to raise capital for the plan. “The Board approved issuance of equity and equity-linked instruments including ordinary shares of the company by way of a rights issue to existing shareholders on the record date for an amount not exceeding Rs 12,800 crore…,” Tata Steel said in a statement.
Tata Steel on Tuesday has said that an amount of Rs 23,500 crore will be required for the project which the company is aiming to complete within 48 months from the date of commencement of construction. “Following the successful implementation of phase I of the Kalinganagar Project in Odisha, the board approved the next phase of expansion of capacity in Kalinganagar by 5 MTPA from 3 MTPA to 8 MTPA (million tonne per annum),” Tata Steel said in an exchange filing.
Meanwhile, India’s stock market opened higher on Wednesday with Sensex and Nifty hitting lifetime highs as investors continue to stay bullish over Narendra Modi’s BJP victory in Gujarat and Himachal Pradesh. At 9.38 am, Sensex was trading at 33,867.45 up by 0.09% and Nifty was trading at 10,478.8 up by 0.15%. BSE Sensex gained 91.85 points or 0.27% to begin at 33,928.59 whereas NSE Nifty ticked up 31.2 points or 0.3% to start at 10,494.4 on Wednesday. Shares of India’s largest carmaker Maruti Suzuki (India) marked a five-digit figure of Rs 10,000 for the first time ever, rising by 1.99% on BSE today. Within minutes of staring up, the key equity indices Sensex and Nifty retreated the morning gains and fell in red. Benchmark Sensex hit a day’s low of 33,807.8 and an all-time high of 33,956.31 while broader Nifty marked a lifetime high of 10,494.45.