The Tata Power Company Limited, India’s largest integrated private power company today announced that it has priced an equity offering in the form of Global Depository Receipts (GDRs) for a gross amount of US$ 335 million. Out of this, each GDR will represent 1 equity share, of a nominal value Rs.10 per equity share (the "Shares") of the Company. The Company will be issuing 14,838,110 GDRs and each GDR has been priced at US$ 22.577 (Rs. 48.27 is the reference exchange rate) as per relevant pricing guidelines for GDRs. The issue was priced on 21st July 2009 and listing is expected to take place on or about 27th July, 2009.
The SEBI floor price for the issue as on date is Rs.1089.78 as per the SEBI pricing formula. Application has been made to the Luxembourg Stock Exchange (the "LuxSE") to list the GDRs. In principle approvals have been obtained from Bombay Stock Exchange and National Stock Exchange to list the underlying shares.
The Company intends to use the net proceeds of the Offering to fund capital expenditures of its existing power plants, projects under implementation and other project plans of the Company (including projects undertaken through its subsidiaries) and any other purpose permitted by applicable laws and regulations from time to time.
Commenting on the equity raising, Mr. Prasad R. Menon, Managing Director said, “The equity raising exercise and the listing on the Luxembourg Stock Exchange marks a significant milestone in the Company’s capital raising journey and will help in capitalizing the balance sheet and enable deployment in our expansion projects.”
Mr. S. Ramakrishnan, Executive Director-Finance said “The GDR offering has attracted quality investors which have enabled the Company to increase the offering size from US$ 250 million to US$ 335 million. This deployment strategy would create value for the Company’s Shareholders in the future.”
Goldman Sachs International and J.P Morgan Securities Ltd. acted as Joint Global Coordinators, Book runners and Lead Managers on this transaction. SBICAP (UK) LIMITED was the Co-Lead Manager for the issue.
About Tata Power:
Tata Power is India's largest private sector power utility with an installed generation capacity of over 2700 MW and a presence in all the segments of the power sector viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. The Company has successful public-private partnerships in Generation, Transmission and Distribution - “North Delhi Power Limited” with Delhi Vidyut Board for distribution in North Delhi, ‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and ‘Maithon Power Ltd.’ with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It has acquired 30% stake in Coal Companies at Indonesia and is developing the first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. With its track record of technology leadership, customer care and redefining contours of the Indian power sector, Tata Power is poised for a five-fold growth and committed to ‘lighting up lives’ for generations to come.
Disclaimer Statement:Some of the statements in this document, are forward-looking statements. These forward-looking statements include references to growth projections, plans, strategies, intentions and beliefs concerning our business and operating environment. There are risks, uncertainties and other factors that may cause actual results to differ materially from those projected by these forward-looking statements.
RISK FACTORS
Investing in the GDRs involves a high degree of risk. Any potential investor should pay particular attention to the fact that Tata Power is incorporated in India and the Group mainly operates in India, under a legal and regulatory environment, which, in some respects, may differ from that which prevails in other countries. Prospective investors should carefully consider the risks described below, in addition to the other information contained in this Offering Circular, before making any investment decision relating to the GDRs or the Shares represented by the GDRs. The occurrence of any of the following events could have a material adverse effect on (i) the Group’s business, results of operations, financial condition and future prospects and cause the market price of the GDRs and the Shares to fall significantly; and/or (ii) Tata Power’s ability to pay dividends. Additional risks not described below or not currently known to Tata Power or that Tata Power currently deems immaterial may also adversely affect the market price of the GDRs and the Shares. |
