Tatas group firms raise over Rs 3,500 cr from global markets
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Last Updated: Wednesday, July 22, 2009, 00:39
  
Mumbai: Tata Steel on Tuesday said it will raise USD 500 million (about Rs 2,418 crore) through issue of securities in the global markets, while sister concern Tata Power is set to raise 250 million US dollars (Rs 1208.31 crore), from GDRs.

The equity raising was increased from an earlier target of USD 400 million, the sources said, but is lower than the USD 600 million sources had said the company was considering raising earlier this month.

The deal was managed by JPMorgan and Citigroup.

The company would be issuing 6,54,10,589 Global Depository Receipts (GDRs) at a price of USD 7.64 a piece, aggregating to USD 500 million, Tata Steel said in a filing to the Bombay Stock Exchange.

Each GDR would represent one ordinary share of Tata Steel and would be listed on the London Stock Exchange, it added.

Citigroup Global Markets, Goldman Sachs International, JP Morgan Securities and UBS are acting as joint lead managers and joint bookrunners for the said issue.

Shares of Tata Steel were trading at Rs 382.40, down 2.22 percent in the morning trade on the BSE.

Integrated power utility major Tata Power Company Ltd on Tuesday said it has launched issuance of global depository receipts for raising 250 million US dollars (Rs 1208.31 crore).

The Finance Committee of Directors took a decision to this effect at its meeting held on Tuesday, Tata Power Company said in a filing with the Bombay Stock Exchange.

After the approval of the committee, the Tata Group firm launched the GDR issue with an option to retain higher amount.

Earlier, the board had authorised the Finance Committee of Directors to finalise the form and structure of the securities to be issued,including its pricing, tenor, interest rate,conversion premium, redemption period, redemption price, and call or put options.

The committee had also been authorised to decide on other terms and conditions relating to the issue like amendments and modifications, it said.

Shares of the company closed at Rs 1,128.90, down 2.35 per cent from the previous close on the BSE.

Bureau Report


First Published: Wednesday, July 22, 2009, 00:39


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