Tata Motors announces terms of the proposed Rights Issue

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The Committee of Directors of Tata Motors Limited at its meeting held today approved the terms of simultaneous and unlinked issue of:

 

1. Ordinary Shares on a Rights basis in the ratio of 1 (one) Ordinary Share for every 6 (six) shares held , The Ordinary Shares would be issued at a price of Rs.340/- per share of face value of Rs.10/- each aggregating Rs.2186 crores, and

 

2.  'A' Ordinary Shares on a Rights basis in the ratio of 1 (one) Ordinary Share for every 6 (six) shares held, The 'A' Ordinary Shares would be issued at a price of Rs.305/- per share of face value of Rs.10/- each aggregating Rs.1961 crores.

 

The 'A' Ordinary Shares would have differential rights as to voting and dividend i.e. the 'A' Ordinary shareholder shall be entitled to one vote for every ten 'A' Ordinary Shares held and will be entitled to receive dividend at 5 percentage points more than the rate of dividend declared on the Ordinary Shares.

 

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.

 

Sourced From: Vaishnavi Corporate Communications Pvt Ltd