Tata Motors plans to raise up to Rs 7,500 crore via rights issue which will be used to invest in business expansion and reduce debt.

The company’s board has given its nod for seeking shareholders’ approval through a postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares. The funds will be used for meeting the company’s growth plans as well as for reducing the debt on its balance sheet, Tata Motors said in a statement.

The quantum, pricing and timing of the issue will be decided later, depending on market conditions post the shareholders and other approvals, it added.

Tata Motors, the country’s largest automobile company, had registered consolidated revenues of Rs 2,32,834 crore in 2013-14.

The company’s shares were trading 1.41 per cent down at Rs 596.55 apiece during morning session on the BSE.