Tata Motors to raise $933.6m from rights issues
New Delhi, September 3, 2008
India's largest automaker, Tata Motors has said it will raise about $933.6 million from two rights issues later this month.
The company said it plans to raise about Rs21.9 billion ($492 million) through an ordinary rights issue at Rs340 a share, which is about 21 per cent less than the company's current share price of Rs 430.
It will also raise about Rs19.61 billion ($441.6 million) for the first time through 'A' ordinary shares or rights issue with differential or low voting rights at Rs 305 a share. Both the offerings will be in the ratio of 1:6, meaning the company will offer one share for every six held.
Tata Motors said the money raised from the two issues will be used to pay back the $2.3 billion bridge loan it had taken for the acquisition of Ford's Jaguar Land Rover. - TradeArabia News Service