Tata Steel prices GDR Issue at $7.644

Tata Steel Ltd has announced that the Board of the Company had authorized the Committee of the Board to consider and approve raising of long term capital by the Company including the quantum, size, terms and type of security as permissible under the existing Shareholders' Resolutions. The Committee at its meeting held on July 20, 2009, had approved the launch of a GDR issuance. Subsequently, it has approved the Size of the Issue. The Company has priced an equity offering in the form of Global Depository Receipts ("GDRs") for a gross amount of US$ 500 million.

The Company will be issuing 65,410,589 GDRs, each GDR representing one ordinary share.

ach GDR has been priced at US$ 7.644 as per the relevant pricing guidelines for GDRs. Citigroup Global Markets Limited, Goldman Sachs International, J.P. Morgan Securities Limited and UBS Limited are acting as Joint lead Managers and Joint Bookrunners to the issue.

The GDRs will be listed on the Professional Securities Market of the London Stock Exchange.

The stock was trading at Rs.396.40, up by Rs.5.30 or 1.36%. The stock hit an intraday high of Rs.399.45 and low of Rs.377.

The total traded quantity was 2984862 compared to 2 week average of 3458798.

Source : Equity Bulls

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