Tata Teleservices (Maharashtra) Ltd is seeking shareholder approval to raise $200 million (Rs 808 crore) through foreign currency convertible bonds. The company’s board is placing a proposal in front of its shareholders on August 24, at its annual general meeting.
The company had reported a loss after tax of Rs 310 crore for 2006-07 and a net loss of Rs 28 crore for the quarter-ended June 30, 2007. It had raised $125 million worth of FCCBs in June 2004. It had also done a rights issue of equity shares in January 2007.
In the explanatory statement to the notice to the general meeting, the company said: “It will be necessary to raise financial resources for funding the said plans. Foreign currency convertible bonds have emerged as an alternative, which allows the company to raise equity at a substantial premium to current market prices at a very low cost.”