Tata Motors accelerates after committee approves fund raising

Tata Motors rose 1.18% to Rs 462.60 at 9:25 IST on BSE after the company said that a duly authorised committee approved offering of non-convertible debentures.

The announcement was made after market hours yesterday, 21 June 2017.

Meanwhile, the S&P BSE Sensex was up 124.05 points or 0.4% at 31,407.69.

On the BSE, 21,247 shares were traded on the counter so far as against the average daily volumes of 5.36 lakh shares in the past one quarter. The stock had hit a high of Rs 462.70 and a low of Rs 458 so far during the day.

Tata Motors said that duly authorised committee approved offering for subscription, on a private placement basis, up to 5,000 rated, listed, unsecured, 7.50% coupon, redeemable, non-convertible debentures (NCDs) of face value Rs 10 lakh each, at par, aggregating up to Rs 500 crore.

On 15 June 2017, the company had said that it is desirous of offering the eighth series of its NCDs aggregating to Rs 500 crore and in this regard will hold a meeting of its duly constituted committee of the board on 21 June 2017.

The issuance is pursuant to the approval of the shareholders passed vide special resolution at the 71th Annual General Meeting of the company held on 9 August 2016 and the board of directors' resolution passed at its meeting held on 23 May 2017.

On a consolidated basis, net profit of Tata Motors declined 16.8% to Rs 4336.43 crore on 2.9% decline in net sales to Rs 77217.19 crore in Q4 March 2017 over Q4 March 2016.

Tata Motors is a market leader in commercial vehicles in India. The company's British luxury unit Jaguar Land Rover (JLR) sells premium luxury cars.

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