Tata Chemicals raises $150 million via FCCB

Mumbai, Jan 27 | Updated: Jan 28 2005, 05:30am hrs
Tata Chemicals, the Rs 2,600-crore inorganic chemicals and fertilisers company of the Tata Group, on Thursday said that it has mobilised, $150 million through foreign currency convertible bonds (FCCB). This has been through the accelerated book built route. Citigroup, Merrill Lynch and Deutsche Bank were the joint book runners to the issue.

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.