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Tata Teleservices arm to raise $200 million debt

Tata Teleservices Ltd is seeking shareholders' approval to raise $200 million through foreign currency convertible bonds, reports Suman Layak.

business Updated: Aug 08, 2007 02:26 IST
Suman Layak
Suman Layak
Hindustan Times
Hindustantimes
         

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.”

First Published: Aug 08, 2007 02:19 IST