Tata Power is raising about Rs2,000 crore through a rights issue for paying its debts and capital expenditure. The issue is priced at Rs60 per share, including a premium of Rs59 a piece
Tata Power Co Ltd said it would raise about Rs2,000 crore through a rights issue for paying its debts and capital expenditure. The issue would open for subscription from 31st March to 15th April.
Existing Investors holding 50 shares will be eligible to buy seven shares through rights issue (Rights entitlement ratio of 7:50), the Tata group company said.
Tata Power will offer 33.22 crore shares with a face value of Rs1 each at Rs60 a share (including a premium of Rs59) to its existing investors.
“Tata Power has earmarked Rs300 crore for generation, transmission and distribution of electricity in the Mumbai license area, while Rs498.35 crore would be used for general corporate purposes,” the offer document from Tata Power said.
Tata Power will extend Rs639.51 crore from the funds raised to Coastal Gujarat Power Ltd, the operator of the 4,000 MW Mundra ultra mega power project in Gujarat, for part repayment of borrowings, according to its offer document. About Rs 533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.
As on December 2013, Tata Power’s total long-term outstanding debt from banks and financial institutions stood at Rs9,091.77 crore. Tata Powers in its December quarter reported 16% higher standalone net profit of Rs251.13 crore from Rs216.38 crore, despite 21% fall in its revenues at Rs2,007.92 crore from Rs2,549.11 crore in as same period a year ago.
Tata Power closed Tuesday 1.2% up at Rs81.35 on BSE. While the 30-share Sensex ended flat at 22,055.
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