Tata Motors rights issue opens today, stk slips

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Tata Motors rights issue opens today, stk slips

At 10:08 am, Tata Motors was quoting at Rs 359, down Rs 15.55, or 4.15% on the NSE. The company's rights issue is going to open today, reports CNBC-TV18. It was trading with volumes of 28,057 shares. On Friday the share closed down 2.46% or Rs 9.45 at Rs 374.55.

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At 10:08 am, Tata Motors was quoting at Rs 359, down Rs 15.55, or 4.15% on the NSE. It has touched an intraday high of Rs 394.55 and an intraday low of Rs 355.25.

Tata Motors rights issue to raise Rs 4145 crore opens today and closes on October 20. Stock went ex-rights on September 9 while record date is on September 16. Right issue has 2 options: Ordinary Rights offer 6.4 crore shares at Rs 340/share in the ratio of 1:6. Second option is Differential Voting Rights which offers 6.4 crore shares at Rs 305/share. It carries voting rights of 1:10 and plus 5% additional dividend in the ratio of 1:6.

It involves dilution of 33% blended for both options of rights. A shareholder on the books can either accept both or renounce one or both types of rights. Traditionally Differential Voting Rights trade at a discount to the full vote price. Discount may vary depending upon credibility of management. Discount may also vary depending upon free float, special dividend & treatment of low vote shareholders.
 
It was trading with volumes of 28,057 shares. On Friday the share closed down 2.46% or Rs 9.45 at Rs 374.55.