Mumbai, Sep 2 (UNI) Auto major Tata Motors today approved the terms and conditions for its proposed rights issue to raise Rs 4,200 crore to repay the short-term bridge loan it had availed to fund acquisition of Jaguar Land Rover brands from the Ford Motor company.
The Committee of Directors of Tata Motors Limited at its meeting held today approved the terms for the proposed issue.
The proposals consisted issue of Ordinary Shares on a Rights basis in the ratio of one Ordinary Share for every six shares held at a price of Rs 340 per share of face value of Rs 10 each aggregating Rs 2,186 crore and iassue of 'A' Ordinary Shares on a Rights basis in the ratio of one Ordinary Share for every six shares held at a price of Rs 305 per share of face value of Rs 10 each aggregating Rs 1,961 crore.
The 'A' Ordinary Shares would have differential rights as to voting and dividend, that is, the 'A' Ordinary shareholder shall be entitled to one vote for every ten 'A' Ordinary Shares held and will be entitled to receive dividend at five percentage points more than the rate of dividend declared on the Ordinary Shares.
The proposed Issue, subject to the necessary regulatory approvals/process, was slated to open around September end. The proceeds of the Issue would be used to prepay part of the Short Term Bridge Loan availed by its subsidiary for financing the acquisition of Jaguar Land Rover from Ford, which was completed on June 2 this year, a Tata Motors release here said.
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