Tata Steel seeks $2bn as it prepares to meet soaring Indian demand
Mumbai — Tata Steel plans to raise as much as 128-billion rupees ($2bn) in a rights offer to help add capacity in India, where demand for the alloy is forecast to triple in over a decade. The money will be used to build and buy mills as well as to repay debt, the company said an exchange filing on Tuesday. The board also approved increasing the capacity of its Kalinganagar plant in Odisha by 5-million tonnes. The addition, to be done over 48 months at a cost of 235-billion rupees, would boost Tata’s local capacity to 18-million tonnes, it said. Tata Steel has sharpened its focus on the Indian market after selling off some unprofitable assets in the UK and agreeing to merge its European operations with Thyssenkrupp. The Mumbai-based company and rivals including JSW Steel are betting on Prime Minister Narendra Modi’s plans to build roads, ports and power plants in the world’s second-most populated nation, and the growing demand for cars and homes to spur sales. The mill is raising pro...
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