Tata Steel FPO subscribed 8% till noon on first day of offer

MUMBAI: The follow-on public offer ( FPO) of Tata Steel got subscribed eight per cent till noon on the first day of issue today.

The issue received bids worth 38.9 lakh shares against 4.8 crore equities on offer, as per the data available on the National Stock Exchange till 1300 hrs.

The company had fixed the price band of Rs 594-610 a share for its FPO offer of 5.7 crore shares.

At the higher end of the price band at Rs 610 per share, the company will garner Rs 3,477 crore from the FPO, while at the lower end of price band at Rs 594 a share, it will raise Rs 3,385 crore.

Tata Steel intends to use the FPO proceeds to fund its ongoing expansion project in Jamshedpur as well as for repaying its debt.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, Deutsche Equities (India) Private Limited, Hsbc Securities And Capital Markets (India) Private Limited, Rbs Equities (India) Limited, Sbi Capital Markets Limited, Standard Chartered Securities (India) Limited are the book running lead managers to the offer.

The offer would close on January 21.