Mumbai, Dec. 24: Tata Power today said its parent company Tata Sons would not exercise an option to convert around 1.04 crore warrants into equity.
The warrants were issued by Tata Power last year.
This is the second instance of a parent company not opting for a warrant conversion as the prevailing share prices are much lower than the conversion price.
Recently, the AV Birla group chose not to convert the warrants issued by Hindalco. It preferred to subscribe to the companys rights issue at a relatively cheaper price. The preferential warrants were convertible at Rs 173.87 per share against the rights issue price of Rs 96.
With reference to an earlier announcement dated July 6, 2007 regarding allotment of warrants to Tata Sons, Tata Power Company has now informed the BSE that Tata Sons has not exercised its option to convert the 1,03,89,000 warrants issued to it into equity shares, Tata Power said.
On the BSE today, Tata Power closed at Rs 725.50.
Anil firm rating
On Tuesday, Fitch Ratings has downgraded Reliance ADA Group company — Reliance Infrastructure Ltd — to AA from AA+, because of increased uncertainty over an equity infusion plan of the promoters.