Tata Motors plans to raise $525 million through a qualified institutional placement of ordinary and differential voting rights shares as part of its Rs 4,700-crore fund-raising plan, aimed mainly at reducing debt, sources close to the development said.
The company plans to raise $200 million via ordinary shares and the rest through differential voting right (DVR) shares.
Tata Motors intends to price the shares at a 5 per cent discount to their current price.
Tata Motors’ ordinary shares today closed up 1.46 per cent at Rs 1,114.15 on the National Stock Exchange, while its DVR shares closed up 0.36 per cent at Rs 802.
Institutional investors could either bid for the DVR component issue or for a combination of DVR and ordinary shares, the sources said.
“They cannot just bid for the ordinary shares,” said a source associated with the development.
Price increase
Tata Motors has raised the prices of some of its passenger and commercial vehicles with effect from today.
In the passenger cars segment, the prices of the Indica and the Indigo have been raised in the range of Rs 4,500 to Rs 14,000, depending upon the model.
Among utility vehicles, the price increase is on the Sumo and Grande MK II, in the range of Rs 7,800 to Rs 10,300. The price increase has been on account of increase in input costs
The price increase in the commercial vehicles segment is in the range of Rs 5,000 to Rs 40,000. This is on account of increase in input costs and the introduction of higher specifications in vehicles, meeting BS-III emission norms.
