Tata Power's Rs 2,000 crore rights issue to open on March 31

Mar 24 2014, 18:11 IST
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Tata Power's rights issue worth almost Rs 2,000 crore will open on March 31 and the proceeds will be utilised for capital expenditure and repaying debt. Reuters Tata Power's rights issue worth almost Rs 2,000 crore will open on March 31 and the proceeds will be utilised for capital expenditure and repaying debt. Reuters
SummaryThe issue will close on April 15, according to Tata Power's offer document filed with market regulator Sebi.

Tata Power's rights issue worth almost Rs 2,000 crore will open on March 31 and the proceeds will be utilised for capital expenditure and repaying debt.

The company will offer 33.22 crore equity shares with a face value of Re 1 each for cash at Rs 60 a share (including a premium of Rs 59) for an aggregate amount of up to Rs 1,993.38 crore to existing investors.

The issue will close on April 15, according to Tata Power's offer document filed with market regulator Sebi.

Every investor holding 50 shares will be eligible to buy seven shares of the company.

Tata Power will extend Rs 639.51 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 the offer document.

About Rs 533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.

The company's total long-term outstanding indebtedness from banks and financial institutions stood at Rs 9,091.77 crore at the end of December 2013.

Tata Power has earmarked Rs 300 crore for generation, transmission and distribution of electricity in the Mumbai license area, while Rs 498.35 crore would be used for general corporate purposes, it said.

JM Financial Institutional Securities, BNP Paribas, HSBC Securities & Capital Markets (India), Kotak Mahindra Capital Company and SBI Capital Markets are the lead managers to the issue. Link Intime India is the registrar.

Tata Power has an operational capacity of more than 8,560 MW while over 840 MW of projects are being set up, according to the document.

The company reported a consolidated net loss of Rs 74.91 crore in the three months ended December 2013, when total income from operations touched Rs 8,700.02 crore.

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