Issue oversubscribed by 2.5 times

Tata Chemicals Limited, one of India's largest manufacturers of heavy chemicals and fertilisers, has successfully raised US$ 150 million through Foreign Currency Convertible Bonds (FCCB) on January 25, 2005, through the accelerated book built route. Citigroup, Merrill Lynch and Deutsche Bank were the joint book runners to the issue.

The bonds are convertible into ordinary / equity shares at a conversion price of Rs. 231.375, which is at a 50 per cent premium over the closing price on January 25, 2005, of Rs. 154.25 on the Bombay Stock Exchange. The bonds carry a coupon rate of 1 per cent p.a. at a yield to maturity of 4.75 per cent at the end of 5 years if not converted into shares during this period. The bonds are expected to be listed on the Singapore Stock Exchange.

The issue was oversubscribed by approximately 2.5 times within a few hours of launch. The company intends to use the aggregate net proceeds for new projects / modernisation / expansion of existing plants / overseas direct investments.