In July 21, Indian steel giant Tata Steel announced that it has raised US$500 million through global depository receipts (GDRs) to be listed on the London Stock Exchange.
The company has priced an equity offering in the form of GDRs for a gross amount of US$500 million, and will be issuing a total of 65.41 million GDRs. Each GDR, having a price of US$7.644, represents one ordinary share.
Commenting on the equity raising, Tata Steel's managing director B. Muthuraman said, "The equity raising exercise and the listing on the London Stock Exchange marks a significant milestone in the company's capital raising journey and demonstrates the investors' interest in the company's strategic direction."
Group chief financial officer Koushik Chatterjee said, "The GDR offering has attracted demand from very good quality investors, which enabled the company to increase the offering size from US$400 million to US$500 million - being one of the largest GDR offerings by any Indian company on the London Stock Exchange. Though the company has adequate liquidity with no material repayments in the next 12 months, the equity raising exercise will help in capitalizing the balance sheet and enable deployment in highly attractive projects - like the ongoing expansion of Jamshedpur in India and overseas mining projects. This deployment strategy would be value accretive to the company's shareholders in the future."
The GDRs will be listed on the Professional Securities Market of the London Stock Exchange. Citigroup Global Markets Limited, Goldman Sachs International, J.P. Morgan Securities Limited and UBS Limited are acting as joint lead managers and joint book runners to the issue.