Tata Power to raise Rs 1,200cr from Tata Sons

Tata Power Company will issue nearly two crore additional shares and convertible warrants to promoters Tata Sons Ltd to raise around Rs 1,200 crore.

According to a release issued by Tata Power to the BSE, the company will issue up to 98.94 lakh equity shares and a maximum of 1.03 crore convertible warrants to Tata Sons on preferential basis.

Based on its current share price of Rs 610.65 on the BSE, Tata Power could raise more than Rs 1,200 crore through the exercise.

Tata Power will seek shareholders' approval for the issue through postal ballot, the release added.

The warrants can be converted into shares after April 1, 2008 but not later than 18 months from the date of issue of the warrants.

Tata Power, the country's largest private power utility, had recently acquired three Indonesian coal firms for $1.1 billion and is also setting up various power projects in the country including the 4,000 MW Mundra Ultra Mega Power Project.