Comments
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.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.