MUMBAI: Tata Motors will raise Rs 4,147 crore via rights issue in the ratio of 1:6 i.e one rights share for every six shares held. The rights issue is expected to open towards the end of September.
According to an official release issued today, the company will issue ordinary shares at Rs 340 per share of Rs 10 each aggregating Rs 2,186 crore, and ‘A’ ordinary shares at Rs 305 per share of Rs 10 each aggregating Rs 1,961 crore.
The ‘A’ ordinary shares would have differential rights on voting and dividend i.e. the ‘A’ ordinary shareholder shall be entitled to one vote for every ten A ordinary shares held, and will be entitled to receive dividend at 5% more than the rate of dividend declared on ordinary shares.
"The proceeds of the issue would be used to pre-pay part of the short-term bridge loan availed for financing the acquisition of Jaguar Land Rover from Ford, which was completed on June 2, 2008," the release added. |
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