Friday, September 26, 2008

Tata Motors' rights issue opens on Sept 29

New Delhi, Sep 26 : Automaker Tata Motors' rights issue for raising about Rs 4,145.8 crore to part finance the buyout of British luxury brands Jaguar and Land Rover will open on September 29.

The company will come out with two unlinked rights issues which would open on September 29 and close on October 20, Tata Motors said in a public advertisement to its shareholders.

In the rights issues, the company would offer ordinary shares at a price of Rs 340 per share, aggregating to Rs 2,185.3 crore. Further, it would allot 'A' ordinary shares (shares with lower voting rights) at a price of Rs 305 a piece, amounting Rs 1,960. 4 crore.

Tata Motors would allot shares in the ratio of one share for every six equity shares of Rs 340 each held in the company. It has fixed September 16 as the record date for determining shareholders entitled for rights issue.

The company has fixed October 10 as the last date for request for split application forms, it added.

Earlier, in the first week of this month, the board had approved Tata Motors' raising of Rs 4,145.8 crore on rights basis for part funding its $2.3 billion Jaguar-Land Rover deal.

Further, the company had announced that the equity shares with lower voting rights would be entitled to five per cent extra dividend.

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