Tata Steel's unit Tata Sponge Iron is looking to raise about Rs 1,800 crore via a rights issue to retire existing debt early, The Economic Times reported.
As per the report, the steel company had raised debt to acquire debt-ridden Usha Martin (UML).
The board of the company is likely to meet on Thursday to consider the terms of the right issue, including the rights entitlement ratio, total number of shares to be issued, issue price and record date, the report said citing sources.
According to one of the sources, the company is expected to price the rights issue at a discount of about 20-25 percent to the market price, the report said, adding that Axis Capital, SBI Cap, Centrum Capital are helping with the issuance.
An email sent by The ET to the company did not elicit any response.
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