Indian automobile major Tata Motors on Wednesday said it will raise Rs.7,500 crore by issuing specially priced shares held by its existing shareholders until the book closure date on April 8.
"The board of directors of the company, at its meeting held on March 25, has approved six fully paid-up ordinary shares for every 109 fully paid-up ordinary shares held as on the book closure date and six fully paid-up 'A' ordinary shares for every 109 fully paid-up 'A' ordinary shares," the company said in a regulatory filing with the National Stock Exchange.
The shares, according to the company, will be issued at a price of Rs.450 per ordinary share (including premium of Rs.448 per share) and Rs. 271 per 'A' ordinary share (including premium of Rs.269 per share).
However, the move will require approval from the Securities and Exchange Board of India, the Reserve Bank of India and all other appropriate authorities as may be necessary.
The shares of the company were up by 1.64 percent in the afternoon trade.