Tata Power gains on fund raising plans

The scrip soared to a high of Rs 1,324 and finally ended at Rs 1,319, up 4% from the previous close. The counter witnessed trades of 108,432 shares as compared to the two-week daily average traded volumes of 96,171 shares on the BSE.
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(Updated at 1111hrs)

Tata Power has moved up marginally on plans of raising $250.

The stock opened at Rs 1,280 and sslipped to a low of Rs 1,262 - down 1%. From there the stock surged 4% to touch a high of Rs 1,310 and is now trading with a 2% gain at Rs 1,294. Over 27,400 shares have been traded on the BSE so far.

The company is planning to raise about Rs 1,170 crore by issuing foreign currency convertible bonds (FCCBs) to fund its power projects. The company has launched the $250-million FCCB issue, which includes a greenshoe option to raise another $50 million. The bonds will mature in five years and will have a yield-to-maturity of 3.5 per cent on a semi-annual basis, according to a press release.