Tata Steel to raise up to $1 billion: Report

Tata Steel Ltd, the world's seventh largest steel maker, plans to raise up to $1 billion in a share sale, the Business Standard newspaper reported on Saturday, citing two unnamed sources.

A source close to the matter told the paper that the firm has mandated Standard Chartered Bank, HSBC Holdings, Deutsche Bank, RBS and Kotak Mahindra Capital to manage the share sale.

The proceeds of the share sale will go towards funding the company's expansion and paying off debt, the paper said. As of September 30, Tata Steel had net debt of $10.7 billion and had efinanced debt from Tata Steel Europe, formerly Corus, the Business Standard said.

In a statement to stock exchanges on Friday, Tata said shareholders have given their approval to raise funds, without  giving details.