Tata Motors said on Tuesday that it will seek approval from its shareholders to raise up to ₹7,500 crore through a rights issue. The proceeds will be used to reduce the debt on its balance sheet. The company’s consolidated debt, as on September 30, 2014, stood at ₹60,773 crore.
In a filing with the BSE, the company said it has decided to seek shareholder approval through a postal ballot to raise funds through a rights issue of ordinary shares and the so-called ‘A’ ordinary shares (which have differential rights as to voting and dividend). “The quantum, pricing and timing of the issue will be decided at a later point in time, depending on market conditions post shareholder and other approvals,” the company said in the filing.
In 2014, it had raised ₹13,700 crore at the group level (including Jaguar Land Rover). On Tuesday, Tata Motors shares gained 2.93 per cent to close at ₹605.10 on the BSE.