Tata Tele lines up $150m FCCB

Tata Teleservices (Maharashtra) board on Friday approved the raising of $150 million through foreign currency convertible bonds (FCCBs).

The company has informed the Bombay Stock Exchange that the board "at its meeting held approved the issue, offer and allotment by the company, in the course of an international offering to eligible foreign investors by way of circulation of an offering circular or prospectus or by way of private placement, foreign currency convertible bonds up to the aggregate principal amount of $150 million to be subscribed in foreign currency, which, at the option of the holders of the securities may be converted into equity shares of the company." The issue is expected to be made in one or more tranches.

Although TTML's senior executives refused to give details on the coupon rate for the bond, the funds are being raised for the company's expansion and rollout in Maharashtra, they added.

On April 20, TTML announced that it will invest close to Rs 700 crore in Maharashtra (including Mumbai) and Goa towards its wireless network expansion and increase its footprint in Mumbai, Pune, Nagpur, Aurangabad and Nashik to 150 locations by September 2004. It also plans to provide seamless roaming across the state.

The company has already invested Rs 3,000 crore in the state to offer voice, data services through its wireline and ISP business to some leading corporate houses and small and medium enterprises.

It also offers wireless services and has added 2.5 lakh subscribers over wireless operations since its launch in July 2003.

The cumulative subscriber base is approximately 5 lakh customers.