Tata Motors gains on successful right issue

Tata Motors was up 3.1% at Rs 503 on the BSE in early morning trades.

Tata Motors has gained 3.1% at Rs 503 on the BSE in early morning trades as its rights issue, which closed on May 2, was oversubscribed by 1.21 times.

"The share issue was over-subscribed by 1.21 times and Tata Motors collected an amount of Rs 9,040.56 crore on applications," the company said in a statement to the BSE.

Ordinary shares were over-subscribed by 1.17 times, with an amount of Rs 7,956.73 crore collected on applications and 'A' ordinary shares were over-subscribed by 1.51 times, with an amount of Rs 1,083.83 crore collected on applications, it added.

"We value the positive and encouraging response of our shareholders in supporting this raising of capital, and would like to thank them for their trust and confidence," said C Ramakrishnan, Chief Financial Officer, Tata Motors.

The proceeds from the issue would 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.

The stock opened at the day's low of Rs 497 and has touched a high of Rs 504 thus far.