FPO: Tata Steel, Following on the restructuring path; Subscribe; Price Band: Rs 594- 610

Tata Steel

Reco: SUBSCRIBE

Price Band: Rs 594- 610

Following on the restructuring path; Subscribe

·      Tata Steel announced to issue 57 million shares as follow on public offering including 1.5 million shares for the employees

·      At the higher and lower ends of the price band, the company would mop up Rs 34.8 billion and Rs 33.9 billion respectively

·      On fully subscription, there would be an equity dilution of 6.3% and at the extended equity base the promoters' stake would come down to 30.5% from 32.5%

·      At our target price of Rs 712, on the upper end of the offer price band the stock has a potential upside of 17%. Recommend SUBSCRIBE