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Tata Power Company has raised nearly Rs 2,000 crore from its right offering, which saw close to two times oversubscription.
The company, which commands a market capitalisation of Rs 20,000, will use the proceeds for capital expenditure and repayment of debt. Tata Power issued 332.2 million shares at a price of Rs 60 per share in the rights issue, which was open between March 31 and April 15. Shares of the company ended at Rs 83.45, down 0.3% on Monday.
The company was offering seven new shares for every 50 existing shares under the rights issue. Investment bankers said almost all the existing investors participated in the rights offering, with some even applying for additional shares which led to over subscription.
The issue saw a total subscription of Rs 3,916 crore, Tata Power said in a release. JM Financial Institutional, BNP Paribas, HSBC Securities, Kotak Mahindra and SBI Capital Markets were the lead managers to the issue.
