Tata Motors on Tuesday announced details of its plan to raise Rs 4,147 crore through two rights issues. The ordinary rights issue is priced at Rs 340 a share is itself at a discount of about 20 per cent from the closing price (Rs 429.85) of the company's shares on the BSE on Tuesday while the issue offering shares with lower voting rights is pegged at Rs 305 apiece, which is at a discount of 10 per cent from the price fixed for its offer of ordinary shares. The shareholders will get one share of both the issues for every six they hold. The rights issue would open by the end of this month and the purpose behind the issue is to part finance the bridge loan it had taken for the $ 2.3-billion acquisition of the iconic Jaguar and Land Rover brands from Ford Motor Co.
The company's committee of directors approved the issue of ordinary shares on a rights basis in the ratio of one share for every six held at a price of Rs 340 for a share to raise Rs 2,186 crore. In line with this, it will offer 'A' ordinary shares in the ratio of one share for every six held at Rs 305 for a share to raise Rs 1,961 crore.
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