Tata Steel exercises green shoe option for CARS offering
A day after pricing the issue of Foreign Currency Convertible Alternative Reference Securities aggregating $725 million, steel giant Tata Steel today said it has also exercised the green shoe option of $150 million.
By PTI |
MUMBAI: A day after pricing the issue of Foreign Currency Convertible Alternative Reference Securities aggregating $725 million, steel giant Tata Steel on Tuesday said it has also exercised the green shoe option of $150 million.
With the green shoe option, the total size of the Foreign Currency CARS would increase from $725 million to $875 million, the company informed the Bombay Stock Exchange.
The CARS, which was over-subscribed by more than two times, would be converted into either qualifying securities in the form of depositary receipts with restricted rights of withdrawal representing underlying ordinary shares with differential rights as to voting or ordinary shares.
The CARS would be convertible at an initial conversion price of Rs 876.6225 per share. These carry a one per cent coupon and the effective YTM is 5.15 per cent, the company said.
The outstanding CARS, if any, at maturity will be redeemable at a premium of 23.3419 per cent of the principal amount.
An application would be made to list the CARS on an overseas stock-exchange, it said.
With the green shoe option, the total size of the Foreign Currency CARS would increase from $725 million to $875 million, the company informed the Bombay Stock Exchange.
The CARS, which was over-subscribed by more than two times, would be converted into either qualifying securities in the form of depositary receipts with restricted rights of withdrawal representing underlying ordinary shares with differential rights as to voting or ordinary shares.
The CARS would be convertible at an initial conversion price of Rs 876.6225 per share. These carry a one per cent coupon and the effective YTM is 5.15 per cent, the company said.
The outstanding CARS, if any, at maturity will be redeemable at a premium of 23.3419 per cent of the principal amount.
An application would be made to list the CARS on an overseas stock-exchange, it said.
ADVERTISEMENT
Citigroup acted as the sole global coordinator and book runner to the offering with ABN AMRO Rothschild and Standard Chartered Bank being the joint book runners.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
