Tata Communication drops rights issue

Tata Communications,formerly VSNL,today said it had dropped the option of rights issue as of now and would incur a capex of 400-500 million in 2009-10 but had no cash crunch. The company said it has raised adequate debt and had strong cash on hand. The company has dropped the rights issue option as of now8230;it is not on the agenda. We have raised 350 million long-term debt including bonds. Our capex in the current fiscal is 400-500 million dollar,and looking at the trend,it will be the same in 2009-10, corporate strategy senior vice-president Srinivasa Addepalli told reporters. The company had earlier approached its major stakeholders the government and Tata Sons for a Rs-1,000 crore rights issue besides raising additional debt. DoT was understood to be not in favour of the rights issue,as it would reduce governments stake in the company.