Auto major Tata Engineering has raised $90 million with a greenshoe option of $10 million by issuing foreign currency convertible bonds.
The bonds will have a tenure of five years, and is convertible into GDRs or shares at a conversion price of Rs 250 at the option of bondholders, according to a release issued to the Bombay Stock Exchange on Thursday.
The bond carries a coupon of one per cent, and will be redeemed after five years if not converted to equity shares or GDRs during the period.
The company intends to use the proceeds for capital and product development expenditure and prepay and retire some debt, the release added.