At a meeting held today of the company's board also approved buy-back of secured non-convertible debentures issued in May 2009 of face value of Rs 1,250 crore that mature on March 31, 2016, as part of its debt restructuring programme.
In a filing to the BSE, the company's board approved fixing of issue price for ordinary share at Rs 450 per share, including premium of Rs 448 per ordinary share.
In terms of ratio of entitlement, Tata Motors said it will be the same for both categories -- six fully paid-up ordinary shares will be issued for every 109 similar shares held as on the book closure date.
The company will offer a total of up to 15,06,44,759 ordinary shares and 2,65,30,290 'A' ordinary shares.
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The two types of shares entail differential rights with regard to voting and dividends.
According to the company, "there are few comparable instances...By Indian listed companies of our market capitalization and size".
On the buy-back of secured Non-Convertible Debentures issued by the company in May 2009, it said it was a part of debt "restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt".
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 next three years and passenger vehicles on new modular platform from FY 2016-17.
Shares of Tata Motors were trading at Rs 535 per share in the afternoon trade, up 0.39 per cent from the previous close on the BSE.