NEW DELHI: Tata Communications on Wednesday said its board has approved raising up to Rs 650 crore through issuance of non-convertible debentures (NCDs).
"The board of directors at its meeting held today has approved fund raising by way of private placement of rated, secured, listed redeemable non-convertible debentures for Rs 500 crore plus green shoe option of Rs 150 crore," Tata Communications said in a regulatory filing.
The coupons issued for the fund will carry interest rate of 7.48 per cent per annum. The company said that proceeds of the issue will be used for refinancing of existing debt, working capital, capital expenditure incurred in the last 12 months, and for general corporate purposes.
Tata Communications has posted around 66 per cent dip in consolidated profit to Rs 58.85 crore for the third quarter ended December 31, 2019. Total income of declined to Rs 4,242.69 crore during the quarter from Rs 4,288.65 crore in the year-ago period.