Tata Investment recovers from the shock of FIPB turning down its ZCCBs proposal

Tata Investment Corporation is currently trading at Rs 280, up by 1.95 points or 0.70% from its previous closing of Rs 278.05 on the BSE.

The scrip opened at Rs 277 and has touched a high of Rs 283.50 with a low of Rs 277. So far 2973 shares were traded on the BSE.

The BSE group ‘B’ Mid-cap stock touched a 52 week high of Rs 804.50 on January 4, 2008 and a 52 week low of Rs 236 on October 27, 2008.

The BSE Mid-cap index is currently trading at 3,455.80 up by 2.99% from its previous closing.

The scrip has witnessed a negative price change of 0.36% since last week and also a negative change of 13.22 since last month.

Tata Investment Corporation’s (TIC) ambitious plan to issue zero coupon convertible bonds (ZCCBs) with detachable warrants has received a major setback when the apex body Foreign Investment Promotion Board (FIPB) turned down its proposal contending that FDI under investment company grade is not permitted under the existing rules for non-banking finance companies (NBFCs).

Notably, TIC that invests in companies, mutual funds and venture capital funds, has been issued a certificate of registration by the Reserve Bank of India (RBI) under the investment company as a non-deposit taking NBFC.

TIC had proposed to issue 6.89 million ZCCBs for Rs 650 at par aggregating Rs 448 crore to the equity shareholders of the company on a rights basis in the ratio of one ZCCB with detachable warrant for every five equity shares held. The ZCCB bonds were proposed to be offered for subscription for cash to existing equity shareholders, including foreign institutional investors and non-resident Indians.