Tata Capital issue over subscribed 6 times

Tata Capital issue over subscribed 6 times
PTI
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First Published: Wed, Feb 25 2009. 05 49 PM IST
Updated: Wed, Feb 25 2009. 05 49 PM IST
Mumbai: Public issue of Tata Group firm Tata Capital got subscribed over six times of the offer, receiving bids worth over Rs3,000 crore, driven by robust response from all categories of investors.
The company would retain Rs1,500 crore subscriptions, from its public issue of secured non-convertible debentures (NCDs) which would be listed on the National Stock Exchange (NSE), Tata Capital said in a statement.
“The issue has gained significant acceptance and this re-instates investor confidence in Tata Capital. Based on the good response we feel such bonds will become an instrument of choice for investors and other corporates leading to the development of a strong corporate bond market, ” Tata Capital managing director Praveen P. Kadle said.
“The issue proceeds are proposed to be used for the financial services company’s various activities including lending and investments, for capital expenditure and to repay existing loans,” Kadle added.
The Rs500 crore issue, which had an option for the company to retain an additional Rs1,000 crore, had opened for subscription on 2 February and closed on 24 February.
ICICI Securities, Citigroup Global Markets India Pvt Ltd and DSP Merrill Lynch Ltd were the lead managers to the issue, while Tata Capital Markets were advisors to the issue.
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First Published: Wed, Feb 25 2009. 05 49 PM IST