Tata Motors trade firm ahead of rights issue

Shares of Tata Motors have moved higher by 2% at Rs 561 on the National Stock Exchange (NSE) ahead of rights issue.

The stock will turn ex-rights on Monday, April 6, 2015, in the ratio of 6:109 i.e. six shares will be allotted for every 109 shares held.

Tata Motors has fixed book closure on April 08, 2015 for the purpose of rights issue entitlement of ordinary shares and A' ordinary shares of face value of Rs 2 each.

The company will issue around 151 million ordinary shares at Rs 450 each and 26.5 million ‘A’ ordinary shares at Rs 271 each. For every 109 fully paid-up shares, six will be allotted in both categories.

On March 30, 2015, Tata Motors had secured its board of directors’ approval for a Rs 7,500-crore rights issue, to fund ongoing and future activities.

The stock opened at Rs 549 and hit a low of Rs 548 on the NSE in early morning trade. Till 1447 hours, a combined 3.04 million shares changed hands on the counter on the NSE and BSE.

Tata Motors