Tata Steel plans to raise USD600 million in FY20

Tata Steel is planning to raise US$600 million in the current financial year (FY20) to fund the second phase of increasing production capacity at its Kalinganagar plant by around 167 per cent from 3MTPA to 8 MTPA and refinance old loans.

The company has set a target of reducing gross debt by US$1 billion in FY20. The company had a debt of Rs. 1 trillion as of March 2019.

Tata Steel had set a production capacity target of 30 MTPA by 2025 in 2018 and recently it has reiterated this goal. With the acquisition of Bhushan Steel, the company's production capacity has improved by 2-3 MTPA. Also, the company is increasing capacity at its Jamshedpur facility by nearly 3 MTPA.

Tata Steel, the flagship company of the Tata Group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 company.

Meanwhile, at 11:38 hours, the stock of Tata Steel was trading at Rs. 459.15 per share on the BSE. The stock opened at Rs. 458.10 and made an intraday high of Rs. 463.90 on the BSE.