Tata Power slips in volatile trade

Tata Power Company slipped 0.37% to Rs 94.60 at 13:56 IST on BSE, with the stock reversing initial gain triggered by the company's subsidiary deciding to repay bonds worth $450 million ahead of its due date.

The announcement was made after market hours on Friday, 1 August 2014.

Meanwhile, the S&P BSE Sensex was up 105.92 points or 0.42% at 25,586.76

On BSE, so far 3.48 lakh shares were traded in the counter as against average daily volume of 10.33 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.05% at the day's high of Rs 96.90 so far during the day. The stock fell as much as 0.63% at the day's low of Rs 94.35 so far during the day. The stock hit a 52-week high of Rs 115.25 on 9 June 2014. The stock hit a 52-week low of Rs 65.86 on 6 August 2013.

The stock had underperformed the market over the past one month till 1 August 2014, falling 12.16% compared with 0.14% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 21.65% as against Sensex's 13.66% rise.

The large-cap company has equity capital of Rs 270.53 crore. Face value per share is Re 1.

Tata Power Company after market hours on Friday, 1 August 2014 said that its wholly owned subsidiary Bhira Investments had issued $450 million fixed to floating rate subordinated notes (Notes), in April 2011. The Notes were secured by a corporate guarantee issued by Tata Power Company and were eligible for 50% equity credit by rating agencies.

Consequent to the changes to the treatment of the Notes in the rating methodology, Bhira has exercised its right to redeem the Notes and has issued a notice for early redemption to the Trustee on 31 July 2014. The record date for the redemption is proposed to be at 1 September 2014, Tata Power Company said.

The redemption will be financed by way of loans raised by Bhira, which is also being concurrently taken care of, the statement said.

Mr. Anil Sardana, CEO and MD, Tata Power Company said, The redemption of the hybrid notes and replacing it with a cheaper funding option will lead to substantial interest savings for the Tata Power Group and this is in line with the company's strategy to optimize its funding sources and lowering interest costs.

On consolidated basis, Tata Power Company reported a net loss of Rs 145.33 crore in Q4 March 2014, as compared to net profit of Rs 181.36 crore in Q4 March 2013. Net sales rose 0.4% to Rs 8473.21 crore in Q4 March 2014 over Q4 March 2013.

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

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