Tata Steel Announces Follow-On Public Offer On 19 January 2011

Online, January 18, 2011 (Newswire.com) - Tata Steel, a globally leading steel company, is set to raise more capital by launching its Follow-on public offer (FPO). The issue, which will remain open for subscription from 19 January to 21 January 2011, will comprise a net public issue of 5.55 crore shares. About 1,500,000 shares would be reserved for subscription by eligible employees.

Tata Steel has set the price band at Rs 594-610 per share. The company expects to raise around Rs 3500 crore successfully through the FPO. The minimum bid lot would be 10 equity shares with a face value of Rs. 10 each. The FPO will lead to an equity dilution of 6.31%.

A large part of funds raised through the FPO would be utilized in the construction of Jamshedpur plant and payment of redemption amounts.

With a production capacity of 27.2 mtpa steel and operations in 26 countries, Tata Steel is one of the largest steel producers.

If you wish to subscribe to this issue, a demat account is mandatory. Basic documentation required to open a demat account includes a PAN card, residence proof and ID proof. For further details on demat account opening, visit http://www.demat9.in/