Press releases 2009
Tata Steel raises $500 million
London Stock Exchange today welcomed Tata Steel, one of the world’s leading steel companies. On admission the firm raised $500 million, the largest ever Indian Global Depository Receipt (GDR) offering in London, and one of the biggest new equity issues to be conducted by a company outside its home market on any global exchange in the last 12 months.
Commenting on the equity raising, Mr B Muthuraman, Managing Director of Tata Steel, said:
"The equity raising exercise and the listing on the London Stock Exchange marks a significant milestone in the company's capital raising journey and demonstrates investors’ interest in the Company's strategic direction.”
Xavier Rolet, Chief Executive, London Stock Exchange Group, said:
“As a globally ambitious Indian company, with significant operations in Europe, Tata Steel is a high profile addition to our markets. Tata Steel’s listing demonstrates that London remains the market of choice for companies from across the globe seeking to access a truly global pool of international investment capital and benefit from trading on the International Order Book, the world’s most liquid trading platform for GDRs”.
With the arrival of Tata Steel, there are now 52 Indian companies quoted on the London Stock Exchange’s markets, comprising 19 listed on the PSM, 11 listed on the Main Market, and 22 quoted on AIM. A further 10 Indian companies are listed on other exchanges but are Admitted to Trading on the London Stock Exchange’s International Order Book.
With over 100 years of experience in steel making, Tata Steel is one of the world's top ten steel companies with an existing annual crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). A truly international company, Tata Steel has a presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. The company’s European manufacturing and marketing network in Europe, spanning the UK, the Netherlands, Germany, France and Belgium, manufactured over 20 MTPA of steel in 2008.
Tata Steel opens the London Stock Exchange's markets
For further information, please contact:
London Stock Exchange Press Office
London +44 (0)20 7797 1222
London Stock Exchange PR Representative
New Delhi +91 120 242 6158 / +91 120 428 3835
Notes to editors:
1. Tata Steel has today listed on the Exchange’s Professional Securities Market.
The Professional Securities Market facilitates the raising of capital through the issue of specialist debt securities or depositary receipts (DRs), an instrument favoured by Indian companies raising funds overseas. As a listed, exchange-regulated market, the Professional Securities Market enables issuers to enjoy the benefits of a flexible and pragmatic approach to regulatory requirements, enabling companies to raise capital without the additional cost of following a retail or equity regime. Additionally, issuers of debt or DRs on the Professional Securities Market are not required to report historical financial information to IFRS or an equivalent standard in listing documents or on an ongoing basis, and may instead use their domestic accounting standards.
The Professional Securities Market is one of London Stock Exchange’s suite of markets for issuers and is operated within the scope of the Exchange’s status as a Recognised Investment Exchange. The UK Listing Authority approves the listing particulars of issuers choosing to join the Professional Securities Market, and admits the securities to the Official List. Companies then apply to the Exchange for admission to trading.
About London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market with over 500 member firms, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.
The London Stock Exchange itself is the world's most international exchange with nearly 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last three calendar years, having attracted 218 international companies which raised over £32 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with over 1500 companies at the end of 2008.
Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.