News: Tata Power board approves issue of equity shares, warrants

(BL 01/05/2007) Mumbai - Tata Power Company said its board has approved issue of equity shares and warrants to its chief promoters Tata Sons.

The promoter group currently owns 32.25 per cent stake in Tata Power, as on March 31, 2007. Tata Sons' equity stake was 28.74 per cent on that date.

Subject to approvals, the company will issue 98.94 lakh equity shares of Rs 10 each (not exceeding five per cent of the paid-up equity share capital of the company) in fiscal 2007-2008 to Tata Sons on a preferential basis.

It will also issue 1.04 crore preferential warrants to Tata Sons, with an option for subscribing to one equity share of Rs 10 each per warrant, the option being exercisable after April 1, 2008, but not later than 18 months from the date of their issue.

Here too, the allotment will not exceed five per cent of the existing paid-up equity share capital (after allotment of equity shares made on a preferential basis).

The price and terms will be according to SEBI guidelines, said a statement from Tata Power.

Tata Power shares gained 1.29 per cent on BSE, closing at Rs 591.65 on Monday.