)
Tata Motors, India’s biggest automobile maker, has secured its board of directors’ approval for a Rs 7,500-crore rights issue, to fund ongoing and future activities.
The Mumbai-based company will issue a little over 150 million ordinary shares at Rs 450 each and 26.5 mn ‘A’ ordinary shares at Rs 271 each. The issue price is 16 per cent lower than the Rs 535 it is trading on the BSE. For every 109 fully paid-up shares, six will be allotted in both categories.
These terms would be subject to approvals of the various regulatory authorities and/or subject to such conditions as may be imposed by any of them while granting such approvals, the company said.
The board also approved a buy-back of secured non-convertible debentures worth Rs 1,250 crore, issued by it in May 2009, the maturity date being March 31, 2016. The buy-back is a part of its debt restructuring programme, to ensure a healthy debt and equity mix and better terms that would include lower cost for its debt.
Tata Motors plans to introduce two or three new products each year in the passenger vehicle segment until 2020. On commercial vehicles, it is working to launch multiple products in the next two to three years, to improve sales and safeguard market share.
