Tata Motors Ltd approves rights issue

The Board of Directors of Tata Motors Ltd at its meeting held on March 25, 2015, has approved the terms of the proposed Rights Issue of ordinary shares of face value of Rs. 2 each (the "Ordinary Shares") and ‘A' ordinary shares of face value of Rs. 2 each (the "'A' Ordinary Shares").

The ratio of Rights entitlement will be 6 fully paid-up Ordinary Shares for every 109 fully paid-up Ordinary Shares held as on the book closure date and 6 fully paid-up ‘A' Ordinary Shares for every 109 fully paid-up ‘A' Ordinary Shares held as on the book closure date.

The Issue Price is fixed as Rs. 450 per Ordinary Share (including premium of Rs. 448 per Ordinary Share.)

The issue price is fixed as Rs. 271 per ‘A' Ordinary Share (including premium of Rs. 269 per ‘A' Ordinary Share.)

The Size of the Issue is up to Rs. 7,500 crores and the number of Shares to be offered through the Issue is up to 150644759 Ordinary Shares and up to 26530290 'A' Ordinary Shares.

The above terms would be subject to the approvals of SEBI, Reserve Bank of India and all other appropriate authorities as may be necessary and/or subject to such conditions as may be imposed by any of them while granting such approvals, which may be agreed to by the Board of Directors and/or a committee thereof.

The buy-back of Secured Non-Convertible Debentures issued by the Company in May 2009, maturity date being March 31, 2016, face value of Rs. 1250 crores, as part of its Debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt.

Shares of TATA MOTORS LTD. was last trading in BSE at Rs.535.75 as compared to the previous close of Rs. 526.15. The total number of shares traded during the day was 321322 in over 12308 trades.

The stock hit an intraday high of Rs. 538 and intraday low of 518.55. The net turnover during the day was Rs. 170377324.

Source : Equity Bulls

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