Business Daily from THE HINDU group of publications
Friday, Mar 13, 2009
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Business Daily from THE HINDU group of publications Friday, Mar 13, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Telecommunications Corporate - Rights Issue
There is no liquidity constraint. There is no funding critical position. –
Mr Srinivasa Addepalli Our Bureau New Delhi, March 12 Tata Communications (formerly VSNL) on Thursday said that it had enough resources to fund ongoing capital expenditure and plans to invest $400-500 million during the fiscal year that begins April 1. Mr Srinivasa Addepalli, Senior Vice-President for Corporate Strategy, told reporters that this did not include funds for a pending WiMax auction due later this year. He said the company was on track to spend up to $500 million this year. According to an internal DoT note, Tata Communications had approached the Government, which holds 26 per cent stake in the company, seeking permission to raise additional debt to fund its expansion plans. The company had told the Government that its liquidity was near critical level and, therefore, had to raise fresh loan. Enough resourcesBut Mr Addepalli said the firm had raised $350 million in debt over the last few months and had $300 million in cash on its balance sheet as of end-January, sufficient to fund their ongoing expansion – apart from the WiMax sale. “There is no liquidity constraint. There is no funding critical position,” he said, adding lenders had shown interest to fund WiMax bids. Rights issueMr Addepalli said a rights issue was an option for the company to raise more funds, but may not be pursued in the near term. Tata Communications said the government is yet to take a decision on liquidating its real estate assets. The company has 773 acres of land that it can sell. DoT seeks details of Tata Comm’s expansion plans Tata Comm to invest $430 m in Asia Pacific Tata Comm seeks Govt nod to raise funds More Stories on : Telecommunications | Rights Issue | Tata Communications Ltd
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