Tantia raises $ 7.5mn through FCCB issue

Mumbai, July 19th, 2007 : Tantia Constructions Ltd., one of India's leading civil and core Infrastructure Company, today announced the closure of its US $7.5 million offering of foreign currency convertible bonds (FCCBs), pursuant to the special resolution passed by the shareholders of the Company.

The FCCBs would be listed on Singapore Exchange Securities Trading Ltd. SBI CAP (UK) Ltd is the Lead Manager for the offering. The Company intends to use this for funding assets, purchase of equipment and machinery.

Details of the FCCB offering:

FCCBs issued by Tantia Constructions Ltd have a tenure of 5 years and will be due in 2012. These instruments carry a coupon rate of 1% and are convertible at a conversion price of Rs 140 per share, representing a premium of Rs 130 to the face value and a premium of 25% to the existing market price.

Commenting on the developments, Mr. I. P. Tantia, Chairman & Managing Director, said, "We are delighted with the support and confidence of international capital market in Tantia's business strategy and vision. This will further strengthen our operations and facilitate faster growth of Tantia Constructions Ltd."

The company has been posting solid figures with its total revenue for the year ended March 31, 2007 closing at Rs 246.03 Crore as against Rs 162.28 crore of the last year. The growth has been propelled by a booming order book position that includes various projects which encompasses all types of core infrastructure creation such as construction of Railway tracks, Roads, Bridges, Urban pipelines and Industrial construction, and venturing out into the Power and Aviation sectors.

Tantia Constructions Ltd has also bagged the prestigious order of constructing a new terminal building and allied works at the Coochbehar Airport. Airport Authority of

India (AAI) awarded the project to Tantia on the basis of bidding, wherein TCL's bid was most competitive. The total cost of the project amounts to Rs.12 crore. The construction work of the airport terminal would be completed within 12 months.

Commenting on the project, Mr. Siddhartha Tantia, Vice "� President, Corporate Planning said, "Being awarded the construction of the airport terminal at Cooch Behar is a prestigious project for us which speaks of the client's trust in our ability. We are also certain that another airport in the state shall augur well for the overall growth of the region and economy."

About Tantia Constructions Ltd:

Tantia Constructions Ltd, established in 1964, is today among India's leading constructor of civil and core infrastructure, which encompass all types of infrastructure creation such as construction of Railway tracks, Roads, Bridges, Urban pipelines, jetties, dykes, and Industrial construction, and venturing out into the Power and Aviation sectors. Apart from national projects, the company has undertaken several construction projects in neighbouring countries such as Nepal, Bhutan and Bangladesh. Some of the major clients includes Zonal Railways, CPWD, Metro Railway (Kolkata), National Highway Authority of India (NHAI), Airports Authority of India (AAI), Kolkata Municipal Corporation (KMC), etc. The company is listed on the Bombay Stock Exchange