Tata Steel plans to raise up to $1 bn via GDR

Tata Steel is all set to raise up to $1 bn by issuing Global Depository Receipt (GDR), it could be launched today if market is conducive, sources with direct knowledge said. Tata Steel is planning to price the issue at around 3-4% discount to the CMP, it could be priced close to Rs 670/share. "The pricing is subject to changes depending on the market movement today" a source said.

Tata Steel had been working on an equity fund raising plan and had looked at DVR shares or ones with Differential Voting Rights at a substantial discount to the present market price. Tata Steel decided against a DVR issue and chose GDR to raise up to $1 bn. Banks which could be advising Tata Steel include JP Morgan, Citi, Standard Chartered, RBS, Kotak, HSBC.