The Tata Finance board has decided to issue 11 per cent cumulative convertible preference shares of Rs 100 each aggregating Rs 59.19 crore on private placement basis. Each CCPS will be converted at a higher conversion price than the rights issue, the company has informed the stock exchange in a notice, subject to the necessary statutory guidelines and approvals.

The authorised equity capital of the company is Rs 44 crore while the authorised preference capital is Rs 6 crore.

As on August 31, 1996, the company had not issued any preference equity while its issued subscribed and called up equity stood at Rs 40.81 crore.

The general reserves of the company stood at Rs 51.22 crore.

The company had gone for a rights issue at a premium of Rs 40 in 1993, and the equity baseunderwent further restructuring when the company merged into itself a company called Telco Dealers Leasing and Finance. Earlier, in 1992, the company had merged into itself Tata Industrial Finance Corp while in 1995, for the purpose of securities trading, the company set up Tata Finance Securities.

According to database Capitaline Ole, the public holds 32.6 per cent equity in the company, and the institutions hold a negligible 0.95 per cent.

The Tata group company's core functions are hire purchase and lease finance, and it has carved a niche for itself especially in car finance. The company is believed to be among those shortlisted for the coming Tata group passenger car launches in various segments.

The company also provides short- and long-term corporate finance and is a Category I merchant banker.

Following the merger of Telco Dealers, the company's turnover for the 15-months ended March 31, 1997, was Rs 370.99 crore against a non-comparable Rs 151.44 crore for the previous 12-month period endedMarch 31, 1996.