Tata Communications jumps after board OKs fund raising

Tata Communications rose 7.82% to Rs 356.15 after the company said its board has approved raising up to Rs 650 crore through issuance of non-convertible debentures (NCDs).

The board of directors at its meeting on Wednesday (15 April 2020) approved fund raising by private placement of rated, secured, listed, redeemable non-convertible debentures (NCDs) of Rs 500 crore and a green shoe option (over-subscription option) of Rs 150 crore.

The NCDs hold tenor of three years from the deemed date of allotment. The coupons issued for the fund will carry interest rate of 7.48% per annum. The company said proceeds of the issue will be used for refinancing of existing debt, working capital, capital expenditure incurred in the last 12 months, and for general corporate purposes.

Tata Communications' consolidated net profit slumped 66.22% to Rs 58.54 crore on a 0.95% decline in net sales to Rs 4,228.72 crore in Q3 December 2019 over Q3 December 2018.

Tata Communications is a leading digital infrastructure service provider and is one of the world's largest telecommunication companies with a global network reaching over 200 countries and territories.

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