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Tata Fin board okays rights issue

Our Bureau

MUMBAI, Jan. 4

THE board of directors of Tata Finance Ltd has approved a rights issue of cumulative convertible preference shares (CCPS) and a private placement of equity shares, aggregating to Rs 117.18 crore.

The company proposes to issue 90,93,156 CCPS of Rs 100 each for cash at par aggregating Rs 90.93 crore to the existing shareholders at the ratio of one CCP for every five equity shares held, according to a notice sent to the stock exchange.

The dividend rate for the CCP would be nine per cent (cumulative) per annum. It shall be compulsorily convertible at the end of two years from the date of allotment. The terms of conversion would be at a price calculated on the basis of the average price of equity shares quoted on the BSE during the last six months prior to conversion, subject to minimum of Rs 50 and a maximum of Rs 75 per share.

The company will also be issuing up to 3,50,000 equity shares of Rs 10 each at a premium of Rs 65 per share aggregating Rs 26.25 crore.

If the investment is made before the record date for the rights issue, the investor would be eligible to subscribe to CCPS, the notice said.