Tata Steel on Friday said its committee of directors has approved raising Rs 670 crore through issuance of debentures.

"The committee of directors has today approved allotment of 6,700...unsecured, redeemable, rated, listed non-convertible debentures (NCDs) having face value of Rs 10,00,000 each for cash aggregating to Rs 670 crore, to identified investors on private placement basis," Tata Steel informed the BSE in a filing.

The NCDs are proposed to be listed on the wholesale debt market segment of the BSE, it added.

Tata Steel stock was trading at Rs 306.95, up over 7 percent on the BSE at 12.43 pm. The benchmark Sensex surged 747 points to trade at 33,525.

So far this year, Tata Steel has corrected by over 35 percent, underperforming the Sensex by over 29 percent. The Sensex has corrected by over 18 percent YTD.