Tata Motors to raise Rs 6,500-cr equity via preferential shares allotment

Tata Motors is to raise equity through a preferential allotment of shares to holding company Tata Sons. The board of directors has approved the raising of Rs 6,500 crore through preferential allotment of ordinary shares and warrants to the promoter. 

This will deleverage the balance sheet, paring debt of the standalone entity and allowing the business to focus on long-term strategy, besides rating support, said Tata Motors. At the end of September, net debt of the standalone entity was Rs 20,000 crore. 

The warrants will be convertible into ordinary shares after 18 months, with a fourth of the consideration to be brought