Tata Motors collects Rs 9,040.56 crore from rights issue

Tata Motors’ rights issue that closed on May 2 was subscribed 1.21 times. The company has collected Rs 9,040 crore on application for the issue. 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 in the ratio of 6 Ordinary Shares for every 109 fully paid-up Ordinary Shares and 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) each in the ratio of 6 ‘A’ Ordinary Shares for every 109 fully paid-up ‘A’ Ordinary Shares, in each case on a rights basis to eligible shareholders in respect of shares held on the Book Closure Date of April 8, 2015. The Share Issue commenced on April 17, 2014 and closed on May 2, 2015. Tata Motors also facilitated participation in the Share Issue by eligible holders of its American Depositary Shares by offering up to 6,409,964 American Depositary Shares, each representing 5 Ordinary Shares (ADSs), at a price of $39.42 per ADS at the rate of 0.055045 ADS rights for each ADS held as of the close of business on April 7, 2015. 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. Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.