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Equity offering of Tata Power to raise $335 million

The Tata Power Company Limited, India's largest integrated private power company, has priced an equity offering in the form of Global Depository Receipts for $335 million to fund capital expenditures of existing and future projects. Each GDR will represent 1 equity share, of a nominal value Rs.10 per equity share of the Company. The Company will be issuing 14,838,110 GDRs and each GDR has been priced at $22.577 as per relevant pricing guidelines for GDRs. The issue was priced on 21 July 2009 and listing is expected to take place on or about 27 July 2009.

The SEBI floor price for the issue as on date is Rs.1089.78 as per the SEBI pricing formula. Application has been made to the Luxembourg Stock Exchange to list the GDRs. In principle approvals have been obtained from Bombay Stock Exchange and National Stock Exchange to list the underlying shares.

The Company intends to use the net proceeds of the Offering to fund capital expenditures of its existing power plants, projects under implementation and other project plans of the Company, including projects undertaken through its subsidiaries, and any other purpose permitted by applicable laws and regulations from time to time.

Mr. Prasad R. Menon, Managing Director, commented, "The equity raising exercise and the listing on the Luxembourg Stock Exchange marks a significant milestone in the Company's capital raising journey and will help in capitalising the balance sheet and enable deployment in our expansion projects."

Executive Director-Finance Mr. S. Ramakrishnan, said, "The GDR offering has attracted quality investors which have enabled the Company to increase the offering size from $250 million to $335 million. This deployment strategy would create value for the Company’s Shareholders in the future."

Goldman Sachs International and J.P Morgan Securities Ltd. acted as Joint Global Coordinators, Book runners and Lead Managers on this transaction. SBICAP (UK) LIMITED was the Co-Lead Manager for the issue.

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