Tata Power Board approves issue of shares, warrants

Tata Power Company Ltd has announced that the Board of Directors of the Company at its meeting held on April 30, 2007 has approved of the Company issuing, subject to receiving Shareholders' consent:

(a) not exceeding 98,94,000 Equity Shares of Rs 10 each (i.e. not exceeding 5% of the existing paid-up Equity Share Capital of the Company) in the Financial Year 2007-08, and

(b) not exceeding 1,03,89,000 Warrants with option to subscribe to 1 Equity Share of Rs 10 each per Warrant which option shall be exercisable after April 01, 2008 but not later than 18 months from the date of issue of the Warrant (i.e. not exceeding 5% of the existing paid-up Equity Share Capital of the Company as increased by the allotment of Equity Shares made on preferential basis),

for cash on Preferential Allotment basis to the main Promoter i.e. Tata Sons Ltd, at such price and on such terms as prescribed in the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 (SEBI DIP Guidelines).

The Company proposes to obtain the consent of the Members by means of a Postal Ballot. The draft of the Notice and Explanatory Statement was also approved by the Board.

Source : Equity Bulls

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