Telco revises terms of rights issue

MUMBAI, AUG. 13. Tata Engineering and Locomotive Company (Telco) has revised the terms of its rights issue, with a plan to issue one convertible debenture (CD) for every four shares at Rs. 65 each and one non-convertible debenture (NCDs) for every ten shares at Rs. 100 each.

The issue size of CDs and NCDs were pegged at Rs. 415.7 crores and Rs. 255.8 crores respectively.

Every five convertible debentures would carry one tradable equity warrant and the CD would carry a coupon rate of 7 per cent annually until its conversion, the company said in a notice to the Bombay Stock Exchange.

The debenture would be converted into an ordinary share of Rs. 10 at a premium of Rs. 55 per share on March 31, 2002 and the warrant could be exercised after 18 months from date of allotment till September 30, 2004, it said.

The warrant holder would be allotted one equity share of Rs. 10 each at a price of Rs. 120 per share. The NCD would carry a coupon rate of 11 per cent per annum up to redemption and two NCDs would have one detachable and tradable equity warrant.

Each NCD would be redeemed in three instalments of Rs. 30, Rs. 35 and Rs. 35 at the end of fourth, fifth and sixth year respectively from the date of allotment, it said.

The NCDs would have a put and call option at the end of 24 months from the date of allotment.

The warrants can be exercised any time after 18 months from the date of allotment till September 30, 2004 by applying for in cash, and being allotted one equity share of Rs. 10 each at the price of Rs. 120 per share.

- PTI

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