Tata Power moves ahead to raise $500 million from perpetual bonds

The largest Indian private-sector power producer by capacit, Tata Power Co, which is planning to raise at least $500 million by selling dollar-denominated perpetual bonds, has hired banks for the deal, but he did not name the banks managing the issue.

The deal follows a recent Rs15 billion perpetual bond sale by Tata Steel Ltd, which, according to analysts points to the growing interest of Indian companies in hybrid instruments.

Meanwhile another Tata Group company, Tata Steel registered a smart increase in output and sales in 2010-11 vis--vis the previous fiscal following the successful implementation of its expansion plan.

The production of hot metal by the company was up 3.8 per cent to 7.503 MT last fiscal from 7.231 MT in 2009-10.

Crude steel production was 6.855 MT in 2010-11, as against 6.564 MT in the previous fiscal.

Additionally, saleable steel production rose 3.9 per cent to 6.691 MT during 2010-11.

Also, the company's sales increased by 4 per cent to 6.414 MT.