Tata Motors firm ahead of board meet for rights issue

Shares of Tata Motors were trading 1% higher at Rs 552 on the National Stock Exchange (NSE) after the company said its board will meet on Wednesday to consider and approve details of the proposed Rs 7,500 crore rights issue, including fixing the issue price.

A meeting of the board of directors of the company will be held on March 25 to consider and approve the detailed terms of the proposed rights issue aggregating up to Rs 7,500 crore including the issue price and rights entitlement ratio, and the Book closure for issuance of the Securities to the existing shareholders of the company, Tata Motors said in a filing to the BSE.

The company's board would also consider buy-back of secured non-convertible debentures of face value of Rs 1,250 crore issued by the company in May 2009, which are to mature on March 31, 2016, it said.

The exercise is part of its debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt, the company said.

The stock opened at Rs 548 and touched a high of Rs 554 on the NSE so far. Till 1031 hours, a combined 810,751 shares changed hands on the counter on the NSE and BSE.

Tata Motors