Tata Power on Friday said it has raised nearly Rs. 2,000 crore by selling shares to existing shareholders for which it received nearly double the required bids.It had offered up to 33 crore equity shares at a price of Rs.60 per share for an amount aggregating to Rs. 1,993.38 crore on a rights basis, which closed on April 15, to the existing shareholdersThe issue has been oversubscribed by 1.96 times, wherein Tata Power collected Rs. 3,916.41 crore on application.
The proceeds from the issue will be utilised for capital expenditure and repaying debt.It had said it would extend Rs. 639.51 crore from the funds raised to Coastal Gujarat Power Ltd, the operator of the 4,000 MW Mundra ultra mega power project (UMPP) in Gujarat, for part repayment of borrowings, according to the offer document.About Rs. 533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.
The company's total long-term outstanding debt from banks and financial institutions stood at Rs. 9,091.77 crore at the end of December 2013.
Tata Power has earmarked Rs. 300 crore for generation, transmission and distribution of electricity in the Mumbai licence area, while Rs.498.35 crore would be used for general corporate purposes.
The proceeds from the issue will be utilised for capital expenditure and repaying debt.It had said it would extend Rs. 639.51 crore from the funds raised to Coastal Gujarat Power Ltd, the operator of the 4,000 MW Mundra ultra mega power project (UMPP) in Gujarat, for part repayment of borrowings, according to the offer document.About Rs. 533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.
The company's total long-term outstanding debt from banks and financial institutions stood at Rs. 9,091.77 crore at the end of December 2013.
Tata Power has earmarked Rs. 300 crore for generation, transmission and distribution of electricity in the Mumbai licence area, while Rs.498.35 crore would be used for general corporate purposes.