According to a company filing on the bourses, TATA Steel of India has sought share holders approval to raise debt of up to INR 14,000 crore through privately placed securities which may even be convertible into equity shares.

The company’s notification to the BSE said that this debt could be raised either internationally or domestically. TATA Steel will also be seeking shareholders’ nod to raise the borrowing limit to INR 70,000 crore from INR 50,000 crore at present, and for the creation of a charge on the moveable and immoveable properties of the company as collateral.

Indian companies have been looking to raise funds overseas also since improved inflow of foreign institutional investment into the country has helped the rupee has gain strength against the dollar, which makes it cheaper to repay such loans.

As per report, the company was in talks with banks to raise a UD 3 billion loan to refinance the debt. It had taken on to acquire Anglo Dutch steelmaker Corus in 2007 for a consideration of USD 12.9 billion.

TATA Steel’s announcement is the latest in a series of fund raising plans, either proposed or executed, by Indian corporations. With the constitution of a pro-reforms and stable government at the Center, international investors are keenly eyeing debt and equity participation opportunities in India, and companies plan on making the most of this sentiment.

In May alone, at least a dozen firms most of which are directly or indirectly associated with the infrastructure sector announced plans to raise around INR 52,000 crore through a mix of instruments such as convertible and non convertible debentures to be placed locally and abroad, bonds, and institutional and public placement of equity shares.

The debt raising plan, at this juncture, may also be well received since the company’s operational performance has started improving, especially in Europe.

TATA Steel Europe, as Corus is now called, was hit badly due to a slump in demand for steel during the euro-zone crisis over the last couple of years. However, on the back of an economic recovery in the region and several measures to improve operational efficiency put in place by TATA Steel’s management, the company’s European operations have started showing signs of a turnaround.