Tata Power launches FCCB offering of up to $300 million

Mumbai: The Tata Power Company, India's largest private power company has launched and priced a $250 million+ upsize option of $50 million, 5 (five) years and 1 (one) day, 1 to 1.75 per cent coupon foreign currency convertible bond/bonds (FCCB) offering subject to fulfillment of certain conditions to the closing of the issue.

The bonds are convertible at 10 per cent premium over the closing price of the company's shares on the National Stock Exchange of India on November 05, 2009 listed and bear a yield to maturity of 3.5 per cent per annum calculated on a semi-annual basis.

These bonds are expected to be listed on the Singapore Stock Exchange. Nomura is the sole underwriter and bookrunner to the offering.

Tata Power intends to use the aggregate net proceeds from this issue for capital expenditure of its existing power plants, projects under implementation and other project plants of the company (including projects undertaken through its subsidiaries).

The Tata Power stock was trading at Rs.1312, up by Rs.40.50 or 3.19%. The stock hit an intraday high of Rs.1318 and low of Rs.1262.

The total traded quantity was 81684 compared to 2 week average of 96171.

Source : Equity Bulls

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