Tata Coffee to raise Rs
Business Standard - July
Tata Coffee, a subsidiary of Tata Tea in
which it has a majority stake, has announced
that it will raise close to Rs 250 crore
through partly convertible debentures.
"The company is resorting
to the fund infusion to part-fund its recent
acquisition of the US-based Eight 0 'Clock
Coffee Company for $220 million and also
for other capex plans like freeze-dried
plant at Theni (Tamil Nadu) and a coffee-processing
unit in Ugandan," said H Ashraff, MD,
The company, on Thursday
announced that the board of directors has
revised the terms and conditions of the
rights issue approved earlier to raise close
to Rs 130 crore.
Under the revised terms,
the company proposes to issue 62.34 lakh
(7 per cent) partly convertible debentures
(PCDs) in the ratio of 1 debenture for every
2 equity shares held as on a record date.
Each debenture will have a face value of
Rs 400 and will comprise of two parts.
Part A of Rs 250 will
be converted into one fully-paid equity
share of Rs 10 on allotment. Part B of Rs
150 will be non-convertible and will be
redeemed in equal installments of Rs 50
each at the end of fourth year, fifth year
and sixth years from the date of allotment.
The non-convertible portion
will carry a coupon rate of 7 per cent per
Earlier, the company had
proposed to raise money through a rights
issue of equity shares in the ratio of two
new equity shares of face value of Rs 10
each for every five existing shares held
within a price band of Rs 220-260 per share
(including premium) on a record date.