Tata Motors Board to meet on Mar 25 on Rs 7500 cr rights issue

Tata Motors today said its board will meet next week to consider and approve details of the proposed Rs 7,500 crore rights issue, including fixing the issue price.
A meeting of the board of directors of the company will be held on March 25 to consider and approve the detailed terms of the proposed rights issue aggregating up to Rs 7,500 crore including the issue price and rights entitlement ratio, Tata Motors said in a filing to the BSE.
The company's board would also consider buy-back of secured non-convertible debentures of face value of Rs 1,250 crore issued by the company in May 2009, which are to mature on March 31, 2016, it said.

The exercise is part of its debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt, the company said.
The Mumbai-based company intends to utilise Rs 7,500 crore to fund various activities, including introduction of more than 100 new commercial vehicles over next three years and passenger vehicles on new modular platform from FY 2016-17.
The company, which recently announced a voluntary retirement scheme for its workmen to cut costs, also intends to use the funds to expand in international markets.
Tata Motors shares today ended at Rs 547.60 apiece on the BSE, down 1.03 per cent from previous close.