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| Tata Power raises 1,600 cr from intl mkt |
| BS Reporter / Mumbai Jul 23, 2009, 00:09 IST |
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Tata Power Company today said it had raised $335 million (about Rs 1,619 crore) through issue of securities in international markets. Each of the issued 14,838,110 Global Depository Receipts (GDRs) was priced at $22.577. The issue was priced on July 21 and the listing is expected to opeationalise on the Luxembourg Stock Exchange by July 27. In-principle approvals have been obtained from Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) to list the shares, the company announced today.
Tata Power said it plannned to use the proceeds to fund capital expenditure of its existing power plants, projects under implementation and other future projects.
 “The equity raising exercise and the listing on the Luxembourg Stock Exchange marks a significant milestone in the company’s capital raising journey. The listing will help in capitalising our balance sheet and enable deployment in our expansion projects,” said Prasad R Menon, managing director, TPC.
Tata Power requires Rs 23,600 crore by March 2012 to complete its ongoing expansion. The company has already tied up Rs 18,100 crore as debt and other loans from various financial institutions. The company has to raise Rs 5,500 crore on its own to fund the equity portion and for other capital expenditure.
The company has plans to raise Rs 2,800 crore through internal accruals. The rest would be raised through dilution of equity of subsidiaries, disinvestment of various holdings or assets and dilution at parent level through various vehicles. A few months ago, the company had sold part of its stake in group telecom company, Tata Teleservices, for Rs 316.72 crore.
The company is implementing thermal power projects of over 5,320 Mw capacity. This includes the 4,000 Mw Mundra Power plant and the 1,050 Mw Maithon, a joint venture with Damodar Valley Corporation. The company is also implementing 98 Mw of wind power in Maharashtra. The projects are targeted to commission by 2013, with a view to increase its power generation capacity from 2,800 Mw to over 8,000 Mw. The company is also planning to strengthen its power transmission and distribution systems in Maharashtra with an investment of over Rs 1000 crore in a few years. S Ramakrishnan, executive director, Tata Power said the GDR enabled the company to increase the size of the offer from $250 million to $335 million.
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