Tata Power subsidiary raises Rs 2,700 crore

Tata Power's wholly-owned subsidiary Coastal Gujarat Power (CGPL) has raised Rs. 2,700 crore via issuance of non-convertible debentures (NCD) on private placement basis.

Tata Power, in a BSE filing said that the company plans to utilize the proceeds for general corporate purposes of Coastal Gujarat Power, including refinance of foreign currency debt; funding of hedge unwinding costs relating to refinancing of foreign currency debt; capital expenditure; and augmentation of working capital. The debt obligations of CGPL under the NCDs are guaranteed by Tata Power.

Earlier this month, Tata Power reported a consolidated total income from operations of Rs. 7,313.41 crore in Q1FY19 as compared to Rs. 6,968.62 crore in Q1FY18 and a net profit of Rs. 1,670.91 crore for the quarter ended June 2018 as compared to a net profit of Rs. 163.78 crore in the same period last year.

At 12:10 hours on Tuesday, Tata Power was trading at Rs. 76.10 per share, up Rs 0.50 or 0.66 per cent on NSE. The stock opened at Rs. 75.40 from a previous close of Rs. 75.60 and touched an intraday high of Rs. 76.75 per share on NSE. So far, the stock has attracted a traded volume of 46,36,421 shares on NSE.