The board of Tata Engineering today decided to prune the size of the company's proposed rights issue by about 30 per cent, and is now looking at raising up to a maximum of Rs 978.65 crore. The issue is now slated for September this year, the company said in a press release.
The auto major was earlier planning to raise between Rs 1,228 crore and Rs 1,382 crore through the proposed issue (subject to future conversion of attached warrants), to fund new product development and provide for prepayment of high cost loans.
The company's board of directors today approved the change in terms of the simultaneous and unlinked issue of fully convertible debentures (FCDs) and non-convertible debentures (NCDs) as well.
Under the scheme finalised today, shareholders will get one FCD for every four shares held, and one NCD for every ten shares.
Tata Engineering's CFO and senior vice president (finance) Praveen Kadle told Business Standard:
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app