Issue of partly convertible debentures with warrants on "rights" basis
January 27, 2005

Tata In order to part finance the company’s expansion plans, the board of directors at its meeting held today has approved of the issue of partly convertible debentures with warrants aggregating to Rs 118.1 crore, (excluding the value of warrants as and when exercised) to the existing shareholders on "rights" basis, as detailed hereunder:

1. The instrument will have a face value of Rs 900/- each and will comprise of the following three parts :-
   a. Part ‘A’ will be converted in to one equity share (of the face value of Rs 10/-) at a price of
   Rs 400/- on allotment.
   b. Part ‘B’ will be one non-convertible debenture of Rs 500/- with a coupon rate of 2 per cent and a redemption premium payable on maturity so as to give a yield to maturity of 5.5 per cent per annum over the 5 year period.
   c. Part ‘C’ will be one warrant entitling the holder to acquire against payment in cash, one share of Trent during the exercise period in the third, fourth or fifth year, at a price which would range between Rs 650/- to Rs 750/- per share as may be fixed at the time of the issue.
2. Rights entitlements will be issued to the existing shareholders in the ratio of 1:10.

3. There will not be any preferential allotment.