Tata Power inches up after board's nod for rights issue

Tata Power Company rose 0.44% to Rs 79.80 at 9:22 IST on BSE after the firm said its board has 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.

The announcement was made before market hours today, 28 February 2014.

Meanwhile, the S&P BSE Sensex was up 97.10 points or 0.46% at 21,084.09.

On BSE, so far 40,000 shares were traded in the counter as against average daily volume of 5.51 lakh shares in the past two weeks.

The stock hit a high of Rs 80.55 and a low of Rs 79.65 so far during the day.

Tata Power Company (Tata Power) said that the terms and conditions of the rights issue including the rights entitlement ratio, the issue price, issue size, record date, timing of the rights issue and other related matters shall be decided subsequently by a duly constituted Committee of the Board.

Separately, Tata Power on Thursday, 27 February 2014 said that the company through its Indonesian subsidiary, PT Sumber Energi Andalan Tbk (SEA) has signed with the Bakrie group entity for the sale of SEA's 30% stake in PT Mitratama Perkasa (MP). The aggregate consideration for SEA's 30% stake in MP is approximately $120 million.

Prior to the sale, MP would be restructured to hold infrastructure assets in relation to PT Arutmin Indonesia (Arutmin) and Tata Power, through its subsidiaries, would continue to hold 30% stake in PT Kaltim Prima Coal (KPC) related infrastructure assets, Tata Power said in a statement.

It is a part of the $500 million Arutmin agreement which was announced by the company on 31 January 2014 regarding the sale of Arutmin and its associated infrastructure assets. Tata Power said it targets to complete the sale of MP in the next two months subject to getting the requisite 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.

Powered by Capital Market - Live News