Tata Steel decides to go for follow-on

The Indian steel manufacturer will offer new shares at a 2% to 4.6% discount versus Friday's closing price, allowing it to raise up to $766 million.

Indian steel producer Tata Steel has decided to raise money through a follow-on public offering FPO and over the weekend set a price range that will allow it to raise between Rs33.86 billion and Rs34.77 billion $746 million to $766 million. A portion of the deal 15% will be available for potential anchor investors today and the subscription period for other investors will run from Wednesday until Friday.

Initially the company was thinking about issuing global depositary receipts GDRs, or even non-voting shares. However, investors were not particularly keen on the latter and, after plans of the former leaked to the Indian press in the first week of January and the share...

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