Tata Motors launches QIP Issue

Tata Motors Limited ("Tata Motors") has launched an issue of Ordinary Shares and 'A' Ordinary Shares through the Qualified Institutional Placement (QIP) route, for a base amount of US$525 million, comprising of US$200 million of Ordinary Shares and US$325 million of 'A' Ordinary Shares, with an option to upsize the 'A' Ordinary Shares to US$400 million. The said issue is being carried out in accordance with the authority accorded by the shareholders of the company vide postal ballot dated August 10, 2010. These shares are proposed to be listed on both the Bombay Stock Exchange and the National Stock Exchange.

Citigroup Global Markets India Private Limited and Credit Suisse Securities (India) Private Limited are acting as the Book Running Lead Managers for the Offering.

Tata Motors intends to use the proceeds primarily for its debt reduction program, capital expenditure, long term working capital requirements, growth objectives, general corporate purposes and any other purposes as may be permissible under applicable law.

The stock was trading at Rs.1137, up by Rs.18.15 or 1.62%. The stock hit an intraday high of Rs.1147.40 and low of Rs.1120.

The total traded quantity was 2.72 lakhs compared to 2 week average of 5.62 lakhs.

Source : Equity Bulls

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