NEW DELHI: Shares of Tata Motors pared gains on Wednesday, after the global auto giant approved the proposed Rs 7,500-crore rights issue, including fixing the issue price.
The board of directors approved 6 fully paid-up ordinary shares for every 109 fully paid-up ordinary shares held as on the book closure date. Or, 6 fully paid-up ‘A’ ordinary shares for every 109 fully paid-up ‘A’ ordinary shares held as on the book closure date.
The shares will be issued at a price of Rs 450 per ordinary share (including premium of Rs. 448 per ordinary share). Rights share issue has been priced at Rs 450/share and Rs 271 per DVR share.
However, Tata Motors would still require the approvals of SEBI, the Reserve Bank of India and all other appropriate authorities, as may be necessary.
The Mumbai-based company intends to utilise Rs 7,500 crore to fund various activities, including introduction of more than 100 new commercial vehicles, over the next three years, and passenger vehicles on new modular platform from FY 2016-17.