Tata Steel on Tuesday said it raised an additional $150 million in its convertible securities offering after selling more stock to meet investors’ demand.
The company sold additional securities under the so-called green-shoe option, thereby increasing the size of the fundraising from $ 725 million to $ 875 mn, it said in a statement issued here.
This funding is essentially to help fund the $ 12 billion purchase of Corus Group. Tata Steel is among the Indian companies benefiting from demand for higher quality assets and luring investors seeking access to the world’s second-fastest growing economy. Lenders in US and Europe have cut financing as the sub-prime route spreads across credit markets.
It may be noted that ICICI Bank raised a yen-denominated loan equivalent to $ 1.5 billion, while Reliance Communications, got lending offers for twice the $1 billion it raised. Domestic companies raised about $ 23.4 billion from bond sales and loans this year, up from $21 billion in the year-ago period.
