At the time of declaring financial results for the year ended 31 March 2008 (FY 2008) during trading hours yesterday, 28 May 2008, Tata Motors announced plans to raise about Rs 7,200 crore through three simultaneous but unlinked rights issues to be used for financing the Jaguar-Land Rover acquisition. However the offer price, ratio and conversion prices of the rights issues will be announced later.
The first issue would consist of normal shares on a right basis amounting to Rs 2,200 crore. The second would raise up to Rs 2,000 crore through issue of “A” equity shares having one vote for every 10 shares. A further amount of Rs 3,000 crore is proposed to be raised through a third rights issue of five-year 0.5 per cent convertible preference shares (CCPs), optionally convertible into “A” equity shares after three years but before five years from the date of allotment.
The company had also proposed to raise about $500/600 million through an appropriate issue of securities in the foreign markets on terms to be decided at that time.
