Tata Power to use GDR funds for capex: S Ramakrishnan
22 Jul 2009
Tata Power has raised $335 million via global depositary receipts (GDR). The issue was priced on 21 July 2009 and the listing is expected to take place on or about 27 July, 2009. (See: Tata Power raises $335 million through GDR sale) Tata Power raises $335 million through GDR sale
In an interview to CNBC-TV18, Tata Power's ED - Finance, S Ramakrishnan, says the company has raised money for capex needs for projects under implementation, like Mundra UMPP.
Could you confirm whether you have raised $330 million and whether you would have wanted to raise the entire amount of $400 million which a lot of people were talking about?
Originally, we went with a size of $250 million with the option to retain the upper side. We did raise $335 million. The response has been pretty good though I believe the market is very selective in terms of the type of companies to invest in at this point of time.
Is that all you need in terms of equity funding, for the Mundra UMPP?
We have stated in our investor presentations on our site that we need between $200 to 500 million for the next three years. The need is about $200 million if I take the next 12 months in mind. So we have raised this particular amount and that will take care of our requirement for about two years going forward.
Will this entire amount be used purely for the equity funding gap or will the money be used for alternative reasons as well?
This will be mainly used for projects that are under implementation through our subsidiaries like the Mundra, Maithon as well as some of the capital expenditure directly incurred by the company divisions, the windmills and the capex that we spent in the Mumbai licensee area.
Now that the GDR is successfully completed, could you walk us through the kind of investor interest in the key investors you had, including who the anchor investor might be this time?
We had investors, I wouldn't like to name them; I think most of them are high quality investors and they come with reasonable amount of subscription. As I said, the interest was quite widespread though I wouldn't call it overwhelming.