By IANS,
Mumbai : Tata Motors Ltd will raise Rs.72 billion ($1.70 billion) through three rights issues, followed by another $500-600 million issue of securities in foreign markets to finance the prestigious Jaguar-Land Rover deal, which will soon be acquired at a price of $2.3 billion.
At its meeting here Wedneday, the company’s board of directors approved a rights issue of equity shares up to Rs.22 billion, ‘A’ equity shares carrying differential voting rights up to Rs.20 billion and rights issue of five-year 0.5 percent convertible preference shares up to Rs.30 billion.
With these issues, it is estimated that the company’s total equity capital will increase by about 30-35 percent during the current financial year.
Though the initial acquisition cost of the Jaguar-Land Rover deal will be financed by bridge loans through a syndicate of banks, the company will repay them by the newly announced capital raising schemes, according to a statement here.