Shares of Tata Motors jumped over 5 per cent to hit intraday high of Rs
515 after the company said that it raised Rs 9,040 crore via rights
issue which was closed on May 2.
Tata Motors rights issue was oversubscribed 1.21 times the company said in a statement. Tata Motors had estimated to raise Rs 7,500 crore by issuing over 15 crore shares of face value Rs 2 at a price of Rs 450.
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 said in a statement.
"We value the positive and encouraging response of our shareholders in supporting this raising of capital, and would like to thank them for their trust and confidence." said C. Ramakrishnan, Chief Financial Officer, Tata Motors.
Rights issue gives an existing share holder a right to buy more shares of the company at a discounted price.
The shares of Tata Motors ended 5.2 per cent higher at Rs 513.50
Tata Motors rights issue was oversubscribed 1.21 times the company said in a statement. Tata Motors had estimated to raise Rs 7,500 crore by issuing over 15 crore shares of face value Rs 2 at a price of Rs 450.
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 said in a statement.
"We value the positive and encouraging response of our shareholders in supporting this raising of capital, and would like to thank them for their trust and confidence." said C. Ramakrishnan, Chief Financial Officer, Tata Motors.
Rights issue gives an existing share holder a right to buy more shares of the company at a discounted price.
The shares of Tata Motors ended 5.2 per cent higher at Rs 513.50
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