As per media reports, Tata Steel on Tuesday said it will raise Rs 165 billion through debt instruments to fund Rs 325 billion acquisition of Bhushan Steel.

The remaining amount will be raised through internal resources, it said. The media reports further stated that the banks are expected to take haircut of about 30-35% in the sale of to an arm of Tata Steel.

Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction. The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.

Shares of the company declined Rs 19.95, or 3.46%, to trade at Rs 557.25. The total volume of shares traded was 436,027 at the BSE (11.06 a.m., Wednesday).