Tata Motors fixes record date for rights issue

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Tata Motors on Friday said it has fixed September 16 as the record date for determining shareholders entitled for the Rs 4,147 crore rights issue.

In a filing to the Bombay Stock Exchange, Tata Motors said the record date for the purpose of the entitlement of shares issued on rights basis has been fixed as September 16.

Tata Motors would allot shares in the ratio of one piece for every six equity shares of Rs 10 each held in the company.

Earlier this week, the board had approved Tata Motors' raising of Rs 4,147 crore on rights basis for part funding its USD 2.3 billion Jaguar-Land Rover deal. The issue is slated to open by the end of this month.

The rights issue plans proposes two unlinked issues under which the company would offer ordinary shares at a price of Rs 340 per share, aggregating Rs 2,186 crore. Further, it would allot 'A' ordinary shares (shares with lower voting rights) at a price of Rs 305 a piece, amounting Rs 1,961 crore.

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

Last month, the home-grown auto major had scrapped its plans to raise Rs 7,200 crore long-term capital funds due to volatile stock market conditions.

The company had said that it would not raise Rs 3,000 crore through issue of convertible preference shares.