Mumbai, Post the rights issue the promoters? stake in Tata Motors rose to 42 per cent from 33 per cent. The promoters ? Tata Sons and group companies ? invested more than Rs 3,000 crore to pick up the unsubscribed portion of the rights issue.
The Tata Motors? Rs 4,136-crore rights issue with differential voting rights was fully subscribed as the promoters and underwriters subscribed the unsubscribed portions, said Mr C. Ramakrishnan, Tata Motors Chief Financial Officer. ?Promoter?s rights entitlement was Rs 1,400 crore but we have contributed a little over Rs 3,000 crore.
Post rights issue, the promoters? stake in the company has increase from 33 per cent to 42 per cent,? said Mr Ramakrishnan.
The underwriters ? JM Financial Consultants, which was also the lead manager ? subscribed to shares worth Rs 300 crore. ?The market condition was turbulent and unprecedented. It has impacted the rights issue,? he said. The rights issue to raise money to part-finance the bridge loan taken by the company to fund the Jaguar Land Rover acquisition opened on September 29 and closed on October 20.
The rights issue was priced at Rs 340 a share for the ordinary shares and Rs 305 a share for those with lower voting rights.
The shares shed more than Rs 110 a share from the day the issue opened to the closing day ? from Rs 355.85 to Rs 243.90.
Reviewing plans
Mr Ramakrishnan said the company is reviewing its earlier plan to borrow $600 million from overseas through equity or equity-related instruments in view of the current global financial turmoil.
The company is also taking a re-look at its capex plans in the unfriendly market environment. ?We are not going back on our capex plans for product developments, but we will review our plans for production expansion plans,? he said.
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