Tata Motors rights issue later this monthSeptember 2nd, 2008 - 5:42 pm ICT by IANS
New Delhi, Sep 2 (IANS) Tata Motors Tuesday said its proposed rights issue to raise Rs.42 billion will open this month-end.The right issues is aimed at part funding the short-term bridge loan taken for financing the acquisition of Jaguar-Land Rover from the Ford.
In a regulatory statement, the Mumbai-based auto major said it will offer one ordinary share for every six shares held at Rs.340 per share, with a face value of Rs.10, totalling Rs.21.86 billion.
Similarly, ‘A’ ordinary shares, with differential rights to voting and dividend, will be offered for every six held shares. These will be issued at Rs.305 per share, aggregating Rs.19.61 billion.
The ‘A’ ordinary shareholder will be entitled to one vote for every 10 ‘A’ ordinary shares held and will be entitled to receive dividend at five percentage points more than the rate of the dividend declared on the ordinary shares.