Tata Motors announces rights issue of Rs 4200 cr

Domestic auto major, Tata Motors, today, announced the terms of the proposed rights issue aggregating around Rs 4200 crore.
 
The committee of the directors of the company approved the terms.
 
For every six shares held by the shareholders, one would get one ordinary share. These shares will be issued at a price of Rs 340 a piece at the face value of Rs 10 each aggregating to Rs 2,186 crore.
 
Another category of 'A' ordinary share, the share will be issued at a price of Rs 305 per share, aggregating to Rs 1,961 crore.
 
In a statement, the company said that 'A' ordinary share would have differential rights as to voting and divident. This means that 'A' ordinary shareholder will be entitled to one vote for every ten 'A' ordinary shares held andd will be entitled to recieve dividend at 5 per centage points more than the rate of dividend declared on the ordinary shares.
 
The proposed issue is slated to open by the end of this month. The proceeds of the issue would be used to prepay part of the short term bridge loan availed by its subsidiary for financing the acquisition of Jaguar Land Rover from Ford which was completed in early June this year.