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| Tata Power raises $335 mn via GDR; to fund ongoing projects |
| Press Trust of India / Mumbai Jul 22, 2009, 12:00 IST |
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Tata Power today said it has raised $335 million (about Rs 1,619 crore) through issue of securities in the international markets, which would be utilised for funding its ongoing projects.
The company would issue 1,48,38,110 Global Depository Receipts (GDRs) at a price of $22.58 each, aggregating to $335 million, Tata Power said in a filing to the Bombay Stock Exchange(BSE).
The company intends to use the net proceeds to fund capital expenditures of its existing power plants, project under implementation and other project plans of the company, the filing said.
Yesterday, the board of Tata Steel had approved the launching of a GDR issue of $250 million, with an option to retain higher amount.
"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.
The country's biggest private sector power company Tata Power's plan to tap the the GDR route for fund raising comes a day after Tata Steel raised $500 million (about Rs 2,418 crore) through issue of GDRs.
Shares of Tata Power were trading at Rs 1,156, up 2.40 per cent in the morning trade on the BSE.
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