Tata Motors to raise Rs 7,500 crore via rights issue for expansion

Tata Motors, the home-grown auto major, plans to raise up to Rs 7,500 crore via rights issue which will be used to invest in business expansion and reduce debt.

Tata Motors' board has approved seeking the approval of shareholders through a postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares for meeting the carmaker's growth plans as well as for reducing the debt on its balance sheet, the company said in a statement.

The quantum, pricing and timing of the issue will be decided later, depending on market conditions post the shareholders' and other approvals, it added.

Tata Motors, the country's largest automobile company, had registered consolidated revenues of Rs 2,32,834 crore in the 2013-14 financial year.

The company's scrip was trading 1.55 per cent lower at Rs 596.70 a piece during morning trade on the Bombay Stock Exchange.