Tata Power drops on equity dilution worries

Tata Power Company lost 2% to Rs 78.45 at 9:17 IST on BSE on equity dilution worries after the firm said that its board will meet on Saturday, 8 March 2014, to consider and decide upon the terms and conditions of the proposed rights issue.

The announcement was made after market hours on Wednesday, 5 March 2014.

Meanwhile, the S&P BSE Sensex was up 81.60 points or 0.38% at 21,358.46.

On BSE, so far 10,000 shares were traded in the counter as against average daily volume of 6.02 lakh shares in the past two weeks.

The stock hit a high of Rs 78.60 and a low of Rs 77.85 so far during the day.

Tata Power Company (Tata Power) said that the duly empowered committee of the board of directors of the company will meet on Saturday, 8 March 2014, to consider and decide upon the terms and conditions of the proposed rights issue including the rights entitlement ratio, the issue price, the issue size, record date, the timing of the rights issue and other related matters.

It may be recalled that Tata Power had on 28 February 2014 said its board approved raising funds up to Rs 2000 crore by way of a rights issue of equity shares, subject to all applicable statutory and regulatory approvals.

On a consolidated basis, Tata Power reported a net loss of Rs 74.91 crore in Q3 December 2013, lower than net loss of Rs 328.92 crore in Q3 December 2012. Net sales declined 3.7% to Rs 8656.11 crore in Q3 December 2013 over Q3 December 2012.

Tata Power is India's largest integrated power company with a significant international presence.

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