Tata Motors today said its Rs 4,147 crore rights issue to part-finance the purchase of Jaguar and Land Rover (JLR) was fully subscribed with promoters picking up significant amount of stake.
"The rights issue is 100 per cent subscribed. The promoters have also bought shares... It is significant," Tata Motors spokesperson told PTI.
While the spokesperson did not give further details, a British media report said that promoters and underwriters were "forced to intervene heavily to prop up" the issue after "investors shunned the offering".
A report in Financial Times quoted that the Tata Motors' Chief Financial Officer C Ramakrishnan as saying: "Given the unprecedented situation... Between the promoters and the underwriters, the issue had to be supported."
The company came out with two unlinked rights offerings on September 29 and it closed on October 20. Under the offer, it alloted shares in the ratio of one fresh share for every six equity shares of Rs 10 each held in the company.
Earlier, the company's board had approved Rs 4,147 crore rights issue for part funding its $2.3 billion JLR deal, which was completed in June this year.
Under the rights issue, the company offered ordinary shares at a price of Rs 340 per share, aggregating Rs 2,186 crore. Further, it alloted 'A' ordinary shares (shares with lower voting rights) at a price of Rs 305 a piece, amounting Rs 1,961 crore.
In September, the home-grown auto major had re-worked its plans to raise Rs 7,200 crore long-term capital funds due to volatile stock market conditions.
Since the issue opened on September 29, Tata Motors' scrip plunged 31.46 per cent from Rs 335.85. It had touched the 52-week low of Rs 232.65 on October 20 on the BSE.
