On Friday, Steel major Tata Steel has informed BSE that it will be planning to raise funds and the plan has been approved by the shareholders of the company in the postal ballot.

There was the required majority during the poll for the approval of three special resolutions by the way of postal ballot. On November 12 the company's board was of the collective view that there should be rising of additional funds by way of issuance of securities, also including equities with differential rights to vote and for dividend.

There should be a minimum additional fund of Rs. 7000 crore which is needed to be raised. One of other proposal to increase the authorized share capital to Rs 8350 crore was also discussed upon.

The evaluation of options for this new fund raising process will only after the finalization of the current important Riversdale bid based in Rio Tinto. Their state run joint venture better known as International Coal Ventures Ltd. is currently under the process of reviewing the offer for Riversdale Mining Ltd. Rio Tinto had offered A$3.9 billion ($3.9 billion) bid in respect to which the offer is being reviewed again.