Tata Motors India seeks shareholders' nod for Rs7,500 crore rights issue
MUMBAI: Tata Motors Ltd, on Tuesday, said it will seek approval from its shareholders for raising up to Rs.7,500 crore through a rights issue in order to reduce the debt on its balance sheet. In a filing to BSE, Tata Motors said the company has decided to seek approval of the shareholders' through a postal ballot for raising funds, up to Rs.7,500 crore through a rights issue of ordinary shares and so-called ' A' ordinary shares (having differential rights as to voting and dividend), for meeting the company's growth plans as well as for reducing the debt on its balance sheet. "The quantum, pricing and timing of the issue will be decided at a later point in time, depending upon the market conditions post shareholders' and other approvals," the company said in the filing. The consolidated debt of Tata Motors, as on 30 September 2014, stood at Rs.60,773.67 crore.