Tata Motors Ltd has announced the closing of its ₹7,500 crore rights issue.
The issue was oversubscribed by 1.21 times and Tata Motors collected ₹9,040.56 crore on applications.
Ordinary shares were oversubscribed by 1.17 times, with an amount of ₹7,956.73 crore collected on applications and ‘A’ Ordinary Shares were oversubscribed by 1.51 times, with an amount of ₹1,083.83 crore collected on applications.
“We value the positive and encouraging response of our shareholders in supporting this raising of capital, and would like to thank them for their trust and confidence,” said C Ramakrishnan, Chief Financial Officer, Tata Motors.
The proceeds from the issue are intended to be used for funding expenditure towards plant and machinery, research and product development, repayment in full or in part of certain long-term and short-term borrowings, and general corporate purposes.
Tata Motors offered up to 15,06,44,759 ordinary shares of face value ₹2 for cash at ₹450 (including a premium of ₹448) each in the ratio of six ordinary shares for every 109 fully paid-up ordinary shares and up to 2,65,30,290 ‘A’ Ordinary Shares of face value ₹2 at a price of ₹271 (including a premium of ₹269) each in the ratio of six ‘A’ Ordinary Shares for every 109 fully paid-up ‘A’ Ordinary Shares, in each case on a rights basis to eligible shareholders in respect of shares held on the book closure date of April 8.
Tata Motors also facilitated participation in the share issue by eligible holders of its American Depositary Shares by offering up to 64,09,964 American Depositary Shares, each representing five ordinary shares at a price of $39.42 per ADS at the rate of 0.055045 ADS rights for each ADS held as of the close of business on April 7.