Tata Power to raise $250 million via FCCBs

Tata Power TATA Power, India's largest private power utility, has revealed its plans to raise $250 million by issuing foreign currency convertible bonds (FCCBs).

The company will roll out the $250 million FCCB issue, which would also have a green-shoe option of raising a further $50 million. The bonds would be listed on the Singapore Stock Exchange.

The FCCBs, having a coupon rate of 1 to 1.75%, which would be convertible into the company's shares at a 10 per cent premium over Rs 1324 at Thursday's close on NSE.

Nomura is acting as the sole underwriter as well as book runner to the issue.

The stock of the company today settled at Rs 1271, down 4% compared to its previous close.