Tata Power to raise Rs 1200 Cr from preferential issues

Mumbai, May 30 (UNI) India's largest private power company Tata Power is planning to raise Rs 1,200 crore through preferential issues to Tata Sons Limited.

The issue consists of equities, shares and warrants, which include 98.9 lakhs equity shares of Rs 10 each in fiscal 2008 and 1.03 crore warrants with option to subscribe to one equity share of Rs 10 each per warrant, which will be exerciseable after April 1 next year, sources said.

''The company is planning to triple its generation capacity in next five years apart from consolidating its business through capacity expansion and will foray into new markets while setting industry benchmarks through enhanced efficiency,''said company MD Prasad Menon.

The company posted a decrease of Rs 43 crore in net profits for quarter ended March 31 at Rs 92.73 crore from Rs 138 crore in the quarter last year.

For the full year, the revenues stood at Rs 4,715.32 crore as compared to Rs 4,534.16 crore in the previous year.

The net profits for the full year rose 14.13 per cent to Rs 696.80 crore as against Rs 610.54 crore last year.

The 120 Mega Watt power plant which is being constructed at Tata Steel works in Jamshedpur is expected to be commissioned by June, sources added.

UNI