The funds will be used for new projects, modernisation expansion of existing plants and overseas direct investments.
A company statement issued here said the bonds are convertible into ordinary/ equity shares at the conversion price of Rs 231.375, which is a 50% premium over the closing price on Jannuary 25, 2005 of Rs 154.25 on The Stock Exchange, Mumbai. The bonds carry a coupon rate of 1% per annum at a yield to maturity of 4.75% at the end of 5 years if not converted into shares during this period. The bonds are expected to be listed on the Singapore Stock Exchange. The issue was oversubscribed by approximately 2.5 times within a few hours of launch, the statement added.
Tata Chemicals has plans to start the expansion work at its Babrala plan with an investment of Rs 150 crore. The proposal for the expansion has been already submitted to the Central government for approval.