SAIL raises 300 Crore by selling short-term paper

New Delhi: State-owned Steel Authority of India (SAIL) has raised 300 crore by selling a short- term commercial paper to State Bank of India to meet temporary cash needs.

"We sold 74-day paper to State Band of India, Mumbai to meet temporary mismatch in cash flow," a SAIL spokesperson said.

However, the spokesperson refused to provide further details on the papers as well as the use of raised funds.

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But market sources said the paper carried 6.4 percent coupon rate.

Sources said the company may be in need of cash due to its expansion plans, which could later be funded through the funds to be raised by follow-on public offer as well as other resources.

The navratna company is undertaking 70,000 capacity augmentation programme take its production capacity from present about 14 million tonnes per annum (MTPA) to 23 MTPA by 2012-13.
Source: PTI