Tata Power, which has raised $335 million (Rs 1,619 crore) through Global Depository Receipts (GDRs), will utilise proceeds for funding its projects under implementation with a total generation capacity of 5,795 mw. The proceeds will also be used for existing and other project plans. The company would issue 1,48,38,110 GDRs at a price of $22.58 each, aggregating to $335 million.

Out of this, each GDR will represent 1 equity share, of a nominal value Rs 10 per equity share of the company. The issue was priced on July 21 and listing is expected to take place on or about July 27. The Sebi floor price for the issue as on date is Rs 1089.78 as per the Sebi pricing formula. Tata Power?s plan to tap the GDR route for fund raising comes a day after Tata Steel raised $500 million (about Rs 2,418 crore) through issue of GDRs.

?The GDR offering has attracted quality investors which have enabled the company to increase the offering size from $250 million to $335 million,? Tata Power executive director (finance) S Ramakrishnan said. Each GDR would represent one ordinary share of Tata Power and would be listed on the Luxembourg Stock Exchange.

?The equity raising exercise marks a significant milestone in the company?s capital raising journey and will help in capitalising the balance sheet and enable deployment in our expansion projects,? Tata Power MD Prasad R Menon said.

Goldman Sachs International and JP Morgan Securities are acting as joint lead managers and joint bookrunners to the offering and SBI-Cap (UK) as the co-lead Manager.

Madangopala R, analyst with the Centrum Broking said ?This is quite positive for Tata Power as it will ease its fund requirement. The company will be able to avoid delays and implement projects in time.?

Another Mumbai-based analyst, who desired anonymity, observed that Tata Power?s move to raise $335 million through GDRs shows its appetite. The timing is crucial when reforms in the power sector are getting momentum. Besides, merchant power plants are being planned which expect good return on their investments.

Shares of Tata Power fell by 0.75% at Rs 1,120.40 on Tuesday.