Fw: FPO Note: Tata Steel – Subscribe

India Infoline Research Tata Steel – Subscribe Price band Rs594-610   Tata Steel is among our top picks in the metals space. The company is issuing 57mn shares (6.3% dilution) at the price band of Rs594-610, effectively raising Rs34.8bn at the upper band. Tata Steel plans to utilize the issue proceeds for its Jamshedpur plant expansion, debt repayment and investments in international raw material projects.      We believe domestic operations would continue to be the earnings driver for Tata Steel over the next two years. Even though near term earnings in Corus would remain under pressure, we expect Corus to deliver an EBIDTA/ton of US$52 in FY12 and US$63/ton in FY13. We expect Tata Steel to report strong earnings in FY13 due to 1) full impact of new 2.9mtpa capacity 2) volume growth in European operations 3) benefits from overseas raw material projects. At the upper band of Rs610, Tata Steel would trade at 8.2x P/E and 5.9x EV/EBIDTA on FY12E, which is at a discount to its peers. We value the company on a SOTP basis and recommend 'Subscribe' to the issue with a fair value of Rs740.   Please Click here to view the attachment..     Warm Regards,   India Infoline Research Team

Fw: Tata Steel FPO

 

Equity Shares offered through this Offer 5,70,00,000 Equity Shares Of which Employee Reservation Portion 15,00,000 Equity Shares Net Offer to public 5,55,00,000 Equity Shares Of which 1. QIB Portion Not More than 2,77,50,000 Equity Shares 2. Non-Institutional Portion Not less than 83,25,000 Equity Shares available for allocation 3. Retail Portion Not less than 1,94,25,000 Equity Shares available for allocation Pre and Post Issue Equity Shares   Equity Shares outstanding prior to the Offer 90,22,14,196 Equity Shares Equity Shares outstanding after the Offer 95,92,14,196 Equity Shares Use of Offer Proceeds Part finance the Company's share of capital expenditure for expansion of existing works at Jamshedpur Payment of redemption amounts on maturity of certain redeemable non-convertible debentures issued by the Company on a private placement basis General corporate purposes. BID/OFFER PROGRAMME Offer Opens 19th January 2011 Offer Closes (QIBs) 21st January 2011 PRICE BAND Rs. 594 to Rs. 610 per share Minimum Application 10 shares with further multiples of 10 shares

About Tata Steel Ltd ("The Company"):

The Company is one of the world's largest steel companies with a steel production capacity of approximately 27.2 mtpa. According to World Steel Association (WSA), the Company was the seventh largest steel company in the world in terms of crude steel production volume in 2009. The Company is also one of the most geographically diversified steel producers, with operations in 26 countries and a commercial presence in more than 50 countries. The Company has grown significantly in recent years with its steel production capacity increasing from approximately 5.0 mtpa in Financial Year 2006 to 27.2 mtpa currently. This growth was primarily due to the Company's acquisition in April 2007 of Corus Group plc ("Corus"), which at the time was estimated by WSA to be the ninth largest steel producer in the world. The Company offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled coils, sections, plates and wires. The Company is also a large producer of ferro-chrome in India. The Company's main markets for its products are Europe and India, which accounted for approximately 72.6% of the Company's net sales in Financial Year 2010, with the remaining sales primarily taking place in other markets in Asia and in North America. The Company's customers primarily comprise the construction, automotive, aerospace, consumer goods and material handling and general engineering industries.

Disclaimer:
This report is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Tata Steel Ltd ("The Company") and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This report has been prepared from the extracts of the RHP. Any person who subsequently acquires equity shares of Tata Steel Ltd must rely solely on the Offer Document issued in connection with the FPO, on the basis of which alone subscription for the equity shares may be made. In addition, investors should pay particular attention to the section of the Offer Document titled "Risk Factors".

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Fw: FPO Update - Tata Steel Ltd

 

Tata Steel Limited Price Band: Rs 594 to Rs 610 Issue Opens on: January 19, 2011 | Issue Closes on: January 21, 2011 Issue Opens: January 19, 2011 Issue Closes: January 21, 2011 Lot Size: 10 Shares & in multiples of 10 shares thereafter Price Band: Rs594 - Rs610 Issue size: Rs3,477 crore Issue highlights (source: BRLM/RHP) Tata Steel is India's largest steel company with a steel production capacity of approximately 27.2mtpa and it was incorporated in 1907. According to World Steel Association (WSA), the company was the seventh largest steel company in the world in terms of crude steel production volume in 2009. The company has presence across the entire value chain of steel manufacturing, including producing and distributing finished products as well as mining and processing iron ore and coal for its steel production. The company's operations are primarily focused in India, Europe and the other countries in Asia Pacific. The company offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled coils, sections, plates and wires. It's also a large producer of ferro chrome in India and its customers primarily comprise the construction, automotive, aerospace, consumer goods and material handling and general engineering industries. In FY2010, the company?s operations in Europe and India accounted for 62.9% and 28.8%, respectively of its total steel production.

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Sharekhan Ltd.: BSE Cash-INB011073351; F&O-INF011073351; NSE - INB/INF231073330; MAPIN - 100008375; DP: NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMS INP000000662. Sharekhan Commodities Pvt. Ltd.: MCX-10080; NCDEX-00132; MAPIN - 100013912, for any complaints email at igc@sharekhan.com. Regd/Admin Add:- Lodha iThink Techno Campus, 10th Floor, Beta Building, Off. JVLR, Opp. Kanjurmarg Station, Kanjurmarg (East), Mumbai 400 042, Maharashtra. Please carefully read the risk disclosure document as prescribed by SEBI & FMC and Do's & Don'ts by NCDEX. Disclaimer: Investments in equity is subject to market risks. You are advised to carefully read the red herring prospectus of the company go through all the Risk Factors mentioned in the offer document issued by the fore investing. The investment as mentioned in the document may not be suitable for all investors. Investors may take their own decisions based on their specific investment objectives and financial position and using such independent advisors, as they believe necessary.