UPDATE 1-Tata Steel issue priced at top end, raises $770mln

MUMBAI, Jan 21 (Reuters) - Tata Steel raised $770 million from a share sale after pricing the issue at the top end of the indicative range on strong investor response to the Indian steelmaker's offering. The issue, which was launched on Jan. 19 and ended on Friday, was covered more than six times reflecting investor confidence in the steelmaker's growth prospects in a fast-expanding economy. Tata Steel, the world's No. 7 steelmaker, said on Saturday it had finalised the issue price at 610 rupees ($13.4) a share, the top end of the 594 rupees to 610 rupees indicative range the company had set for the offering. The company was offering 57 million shares in the issue to partly fund a 3-million-tonne capacity expansion at its Jamshedpur plant in eastern India, repay a part of its $10 billion debt and invest in other projects. Earlier this week, Tata Steel raised 5.08 billion rupees ($112 million) from 33 anchor investors that included the Abu Dhabi Investment, Government of Singapore, and investment arms of Fidelity, Morgan Stanley and Credit Suisse. Indian companies raised $24.9 billion from equity issues in 2010, posting a growth of 22 percent from the previous year and marking its best annual performance since 2007. The fundraising last year had been bolstered by a firm stock market and increased appetite among foreign portfolio investors looking to tap growth opportunities in Asia's third-largest economy growing at 8.5 percent. RBS, HSBC, SBI Capital, Citigroup, Deutsche Bank, Standard Chartered and Kotak Mahindra were managers to the Tata Steel offering -- the biggest so far this year in India. Shares in Tata Steel, valued at $12.6 billion, ended down 0.8 percent on Friday at 629.60 rupees in a Mumbai market that fell 0.2 percent. It had risen about 10 percent in 2010, less than a 17.4 percent rise in the main index. ($1=45.6 rupees) (Reporting by Sumeet Chatterjee; Editing by Aradhana Aravindan) ((sumeet.chatterjee@thomsonreuters.com; +91-22-6636 9068; Reuters Messaging: sumeet.chatterjee.reuters.com@reuters.net)) Keywords: TATASTEEL SHARESALE/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved.

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