Tata Steel dropped 2.5% today to Rs.692.65 and continues to remain firmly in the red.

This drop today is despite or should we say on account of the news that it’s Board yesterday approved Rs 12,800 crore fundraising via the rights issue of equity shares.

The Board also approved the plans to expand the capacity of Kalinganagar plant by 5 million tonne per annum (MTPA) to 8 MTPA with an investment of Rs.23,500 crore. It is aiming to complete within 48 months from the date of commencement of construction.