Telco to raise Rs 1,382 crore through rights issue
Mumbai: Tata Engineering has decided to mop up Rs 1,382 crore through a rights issue of convertible and non-convertible debentures to fund its product development plans. The proceeds will also be deployed for repaying high cost borrowings.
The company's board has approved the simultaneous issue of convertible debentures, non-convertible debentures and non-convertible debentures with detachable warrants on a rights basis in the ratio of one convertible debenture and one non convertible debenture for every five shares of the company held (1:5).
The proposed issue will result in an equity dilution of around 20 per cent at the time of conversion of the convertible debentures and another 10 per cent if all warrants are exercised by March 31, 2004.

The issue will open in the first quarter of the next fiscal.
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Sebi to impose stiff penalties for Benami applications
New Delhi: The Securities and Exchanges Board of India (Sebi) is examining a fresh guidelines that could send prospective investors to prison for up to five years, in case they file applications under fictitious names. Under the new rules, such applicants would also stand to forfeit the entire cash paid upfront with their application forms.
Companies coming out with public issues are also being asked to warn investors in their application forms against multiple applications and the dangers of getting caught.

The proposed Sebi guidelines are expected to be in place soon.
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