It seems to be the season of GDR issues, just like it was the season of ECBs (external commercial borrowings) and FCCBs (foreign currency convertible bonds) a few years ago. After Tata Steel and Suzlon Energy, Tata Power has announced its intention to raise $250mn or about Rs 1,200 crore through a GDR issue. It also has a green shoe option allowing it to retain a portion of the oversubscription. The issue will open today and the pricing and issue size should become known by tomorrow.
Tata Power has not specified any particular purpose for which the funds are being raised. It has sizeable projects on hand, with two big ones being the 4,000MW ultra mega power plant at Mundra and the 1,050MW Maithon Power Project which is a joint venture between the company and Damodar Valley Corporation.