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Tata Motors fix pricing for Rs 4,200 crore rights issue
September 02, 2008 17:19 IST
Tata Motors [Get Quote] on Tuesday announced the pricing and other details of the Rs 4,200-crore (Rs 42 billion) rights issues which the company plans to come out with to partly finance the buyout of British luxury brands Jaguar and Land Rover.
Tata Motors would go for two but unlinked rights issue in the ratio of 1:6, that is one ordinary share for every six shares held in the firm. The rights issue is slated to open by the end of September. The shares have a face value of Rs 10 each, it said in a filing to the Bombay Stock Exchange.
The company would issue ordinary shares at a price of Rs 340 per share aggregating Rs 2,186 crore (Rs 21.86 billlion). Further, it would allot 'A' ordinary shares at a price of Rs 305 per piece, amounting Rs 1,961 crore (Rs 19.61 billion).
"The proposed issue, subject to the necessary regulatory approvals/process, is slated to open around September end, 2008. The proceeds of the issue would be used to prepay part of the Short Term Bridge Loan availed by its subsidiary for financing the acquisition of Jaguar Land Rover from Ford which was completed on June 2, 2008," the filing said.
The 'A' ordinary shares would have differential rights as to voting and dividend. An 'A' ordinary shareholder would be entitled to one vote for every ten 'A' ordinary shares held in the company.
Further, they would be entitled to receive dividend at five percentage points more than the rate of dividend declared on the ordinary shares.
The proposal was approved by the committee of directors of the company.
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