The move could raise hundreds of millions of pounds to help offset the huge debt Tata has piled up to secure the Anglo-Dutch steel company, The Daily Telegraph stated.

The Indian firm is working with Merrill Lynch and Morgan Stanley, the investment banks, on a series of financing options, the report said.

After a three-month bidding war with Brazilian steel rival CSN, Tata Steel secured Corus following an eight-hour auction that ended in the early hours on Wednesday.

The report quoted B Muthuraman, managing director of Tata Steel, saying the company would look at a range of "financial instruments" before deciding on any fund-raising.

The Tata-Corus saga