Tata Motors fixes record date for rights issue

Tata Motors fixes record date for rights issue
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First Published: Fri, Sep 05 2008. 11 53 AM IST
Updated: Fri, Sep 05 2008. 11 53 AM IST
PTI
Mumbai: Tata Motors today said it has fixed 16 September as the record date for determining shareholders entitled for the Rs4,147 crore rights issue.
In a filing to the Bombay Stock Exchange, Tata Motors said the record date for the purpose of the entitlement of shares issued on rights basis has been fixed as 16 September.
Tata Motors would allot shares in the ratio of one piece for every six equity shares of Rs10 each held in the company.
Earlier this week, the board had approved Tata Motors’ raising of Rs4,147 crore on rights basis for part funding its $2.3 billion Jaguar-Land Rover deal. The issue is slated to open by the end of this month.
The rights issue plans proposes two unlinked issues under which the company would offer ordinary shares at a price of Rs340 per share, aggregating Rs2,186 crore. Further, it would allot ‘A´ ordinary shares (shares with lower voting rights) at a price of Rs305 a piece, amounting Rs1,961 crore.
Further, the equity shares with lower voting rights would be entitled to five per cent extra dividend, it had said.
Last month, the home-grown auto major had scrapped its plans to raise Rs7,200 crore long-term capital funds due to volatile stock market conditions.
The company had said that it would not raise Rs3,000 crore through issue of convertible preference shares.
Shares of Tata Motors were trading at Rs418.50, down 2.40% on the BSE.
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First Published: Fri, Sep 05 2008. 11 53 AM IST