Tata Steel shares rise for sixth session as firm to raise Rs 2,150 cr via debentures

Shares of Tata Steel rose over 1% in early trade today after the company’s board cleared the issue of fixed rated, unsecured, redeemable, rated, listed non-convertible debentures (NCDs) on a private placement basis to eligible investors. The 2.15 lakh NCDs of Rs 1 lakh each will aggregate to Rs 2,150 crore. Tata Steel shares gained 1.02% to Rs 113.50 against the previous close of Rs 112.35 on BSE. Shares of Tata Steel opened marginally higher at 112.70 against the previous close of Rs 112.35 on BSE today.

The metal stock has lost 3.6% in a year but risen 1.11% this year. At 9:25 am, Tata Steel shares were trading 1.38% higher at Rs113.90. Total 2.39 lakh shares changed hands amounting to a turnover of Rs 2.70 crore on BSE.

Market cap of Tata Steel rose to Rs 1.39 lakh crore. The stock hit a 52-week high of Rs 138.63 on April 6, 2022 and a 52 week low of Rs 82.71 on June 23, 2022.

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In terms of technicals, the relative strength index (RSI) of Tata Steel stands at 43.5, signaling it's neither oversold nor overbought. Tata Steel stock has a one-year beta of 1.2, indicating high volatility during the period. Tata Steel shares are trading higher than the 5 day, 100 day and 200 day moving averages but lower than 20 day and 50 day moving averages.

The NCDs will be listed on the wholesale debt market of BSE. Date of allotment of debentures will be February 27, 2023 and they will mature on February 25, 2028.

The debentures have been rated “AA+” by India Ratings and Research Private Limited (India Ratings) and “AA+” by CARE Ratings Limited (CARE Ratings).

Meanwhile, Tata Steel plans to raise a massive Rs 4,000 crore via bond sale, its first in about five months. According to reports, the Tata Group company is planning to raise funds for which it is likely to seek quotations from banks this week. Tata Steel last announced a Rs 2,000 crore bond sale in September 2022.

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