Tata Power to allot seven shares for every 50 under rights issue

New Delhi: Tata Power will allot seven equity shares for every 50 shares, held by an investor in the company under its Rs 2,000 crore rights issue. It will also be utilised for funding expansion plans.

The rights issue totals up to 33.22 crore-equity shares with an issue price of Rs 60 per share, amounting to Rs 1,993.38 crore.

‘An eligible equity shareholder will be entitled to apply for seven equity shares for every 50 equity shares held by eligible equity shareholder on the Record Date,’ stated the Tata Power stock exchange filing.

Tata Power has an operational capacity of more than 8,560 MW. The company also reported a consolidated net loss of Rs 74.91 crore ended in December 2013.

Shares of Tata Power were trading at Rs 78.45, down 0.88 per cent on the BSE. The Board Committee of Tata Power finalised this proposal on March 8.