Tata Motors' rights issue subscribed 1.2 times

Tata Motors, India's biggest automobile company, said its rights issue that closed on May 2 was subscribed 1.21 times.

The company disclosed it collected Rs 9,040 crore on application for the issue.

Tata Motors offered up to 15,06,44,759 ordinary shares of face value Rs 2 for cash at a price of Rs 450 (including a premium of Rs 448).

The offer was six ordinary shares for every 109 fully paid-up ordinary shares.

This was accompanied by issue of 2,65,30,290 'A' ordinary shares of face value Rs 2 at a price of Rs 271 (including a premium of Rs 269).

The offer was six 'A' ordinary shares for every 109 fully paid-up 'A' ordinary shares, in each case on a rights basis to eligible shareholders in respect of shares held on the book closure date of April 8.

The share issue commenced on April 17 and closed on May 2. Tata Motors also facilitated participation in the share issue by eligible holders of its American depositary shares (ADS) by offering up to 64,09,964 ADS, each representing five ordinary shares (ADSs), at a price of $39.42 per ADS at 0.055045 ADS rights for each ADS held as of the close of business on April 7.

Ordinary shares were oversubscribed by 1.17 times, with an amount of Rs 7,956.73 crore collected on applications and 'A' ordinary shares were oversubscribed by 1.51 times, with an amount of Rs 1,083.83 crore collected on applications, the company said.

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.

Citigroup Global Markets India, DSP Merrill Lynch, Credit Suisse Securities (India), HSBC Securities and Capital Markets (India) and J P Morgan India are global coordinators and senior lead managers to the share issue; ICICI Securities Ltd, Kotak Mahindra Capital Company Ltd and SBI Capital Markets Ltd are the lead managers to the share issue; HDFC Bank Ltd is the co-lead manager to the share issue.