Tata Power said on Friday it has raised nearly R2,000 crore by selling shares to existing shareholders for which it received nearly double the required bids.
Tata Power said on Friday it has raised nearly R2,000 crore by selling shares to existing shareholders for which it received nearly double the required bids.
Tata Power had offered up to 33 crore equity shares at a price of R60 per share for an amount aggregating to R1,993.38 crore on a rights basis, which closed on April 15, to the existing shareholders.
The issue has been oversubscribed by 1.96 times, wherein Tata Power collected R3,916.41 crore on application. The rights issue opened on March 31. The company received over 89,000 applications for the rights issue. The proceeds from the issue will be utilised for capital expenditure and repaying debt.
Tata Power had said it would extend R639.51 crore from the funds raised to Coastal Gujarat Power, the operator of the 4,000-MW Mundra ultra-mega power project in Gujarat, for part repayment of borrowings, according to the offer document.
About R533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.
The lead managers to the issue were JM Financial Institutional Securities, BNP Paribas, HSBC Securities & Capital Markets (India), Kotak Mahindra Capital Company and SBI Capital Markets. The company's total long-term outstanding debt stood at R9,091.77 crore at the end of December 2013.
Source: Financial Express
