Tata Power raises $335 million through GDR sale

Just a day after Tata Steel raised $500 million through a global depositary receipts offering (See: Tata Steel's GDR issue oversubscribed), Tata Power has announced raising $335 million yesterday through a sale of GDRs.

Priced at Rs1,089.80 per share, the GDRs were isued at approximately a three-per cent discount to the stock's last closing price.

Tata Power, India's largest private sector power utility, had originally planned to raise $250 million, which it later enhanced to $335 million.

"The GDR offering has attracted quality investors which have enabled the company to increase the offering size from $250 million to $335 million," said S Ramakrishnan, executive director-finance. "This deployment strategy would create value for the company's shareholders in the future."

According to a company press release, each of the 14,838,110 GDRs of the issue will represent one equity share, of a nominal value Rs10 per equity share, and will be priced at $22.577 as per relevant pricing guidelines for GDRs. The issue was priced on 21 July 2009 and the listing is expected to take place on or about 27 July 2009.

The SEBI floor price for the issue as on date is Rs1,089.78 as per the SEBI pricing formula.