Tata Power on Monday said its R2,000-crore rights issue has been oversubscribed by nearly two times.
Tata Power had offered up to 33-crore equity shares at a price of R60 per share for an amount aggregating to R1,993.38 crore on a rights basis, which closed on April 15, to the existing shareholders.
“The issue has been oversubscribed by 1.96 times, wherein Tata Power collected an amount of R3,916.41 crore on application,” the company said in a statement.
The rights issue opened on March 31. The proceeds from the issue will be utilised for capital expenditure and repaying debt.
Tata Power, had earlier said, that it will extend R639.51 crore from the funds raised to Coastal Gujarat Power, the operator of the 4,000 MW Mundra ultra mega power project in Gujarat, for part repayment of borrowings, according to the offer document.
About R533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power. The company's total long-term outstanding debt from banks and financial institutions stood at R9,091.77 crore at the end of December 2013.
Tata Power has earmarked R300 crore for generation, transmission and distribution of electricity in the Mumbai licence area, while R498.35 crore would be used for general corporate purposes. Tata Power has an operational capacity of more than 8,560 MW while over 840 MW of projects are being set up.