14/05/2015
Tata Motors on Thursday said its rights issue, which closed on May 2, was oversubscribed by 1.21 times and the company "collected" an amount of Rs 9,040.56 crore.
"The share issue was over-subscribed by 1.21 times and Tata Motors collected an amount of Rs 9,040.56 crore on applications," the company said in a statement.
Ordinary shares were over-subscribed by 1.17 times, with an amount of Rs 7,956.73 crore collected on applications and 'A' ordinary shares were over-subscribed by 1.51 times, with an amount of Rs 1,083.83 crore collected on applications, it added.
Ordinary shares are any shares that are not preferred shares and do not have any predetermined dividend amounts.
"We value the positive and encouraging response of our shareholders in supporting this raising of capital, and would like to thank them for their trust and confidence," said C Ramakrishnan, Chief Financial Officer, Tata Motors.
The proceeds from the share issue are intended to be used for funding expenditure towards plant and machinery, research and product development, repayment in full or in part of certain long-term and short-term borrowings, and general corporate purposes, the company said.
The home grown automobile major's rights issue to raise Rs 7,500 crore began on April 17, 2014 and closed on May 2, 2015.
As part of the share sale, the company offered up to 15,06,44,759 ordinary shares of face value Rs 2 for cash at a price of Rs 450 (including a premium of Rs 448) each. This was issued in the ratio of six ordinary shares for every 109 fully paid-up ordinary shares held.
It also offered up to 2,65,30,290 'A' Ordinary Shares of face value Rs 2 at a price of Rs 271 (including a premium of Rs 269). This was also issued in the ratio of six 'A' Ordinary Shares for every 109 fully paid-up 'A' Ordinary Shares.
The company said it also facilitated participation in the share issue by eligible holders of its American Depositary Shares (ADS) by offering up to 64,09,964 of such shares at a price of USD 39.42.
Tata Motors shares today closed 1.90 per cent down at Rs 488.20 apiece on the BSE.
