The board of Tata Engineering today decided to prune the size of the company's proposed rights issue by about 30 per cent, and is now looking at raising up to a maximum of Rs 978.65 crore. The issue is now slated for September this year, the company said in a press release.
The auto major was earlier planning to raise between Rs 1,228 crore and Rs 1,382 crore through the proposed issue (subject to future conversion of attached warrants), to fund new product development and provide for prepayment of high cost loans.
The company's board of directors today approved the change in terms of the simultaneous and unlinked issue of fully convertible debentures (FCDs) and non-convertible debentures (NCDs) as well.
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Under the scheme finalised today, shareholders will get one FCD for every four shares held, and one NCD for every ten shares.
Tata Engineering's CFO and senior vice president (finance) Praveen Kadle told Business Standard: