Tata Steel Limited: Convertible Alternative Reference Securities

Case Solution

Vasant Sivaraman, Adithya Anand
Ivey Publishing ()

Shortly after acquiring Corus in 2007, Tata Steel Limited entered international markets with an offering of Convertible Bonds with Special Features (CARS). The $ 875 million offer was the first of its kind in India. The success of the issue reflected the confidence of investors in the country and the company. This case includes a complete analysis of CARS with a scope that includes the valuation, structuring of the financing instrument according to the strategic imperatives of the issuer and investment analysis.

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