Tata Motors scrip up 5% on raising Rs9,040cr from rights issue

Stocks of auto major Tata Motors surged over 5 per cent today, adding Rs 6,274.11 crore to its market valuation, after the company raised Rs 9,040.56 crore from its rights issue.
The stock closed the day with a gain of 5.18 per cent at Rs 513.50 on the BSE. During the day, it jumped 5.59 per cent to Rs 515.50.
At the NSE, it rose by 5.24 per cent to settle at Rs 513.70.
The scrip was the top gainer among the BSE Sensex and NSE Nifty stocks.
Following the gain in the stock, the company's market value rose by Rs 6,274.11 crore to Rs 1,39,880.11 crore.

"Tata Motors was up more than 5 per cent after it reported that it has raised Rs 9,040.56 crore from its rights issue," said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd.

Tata Motors yesterday said its rights issue, which closed on May 2, was oversubscribed by 1.21 times and the company raised an amount of Rs 9,040.56 crore.
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, it said.
Ordinary shares are not preferred shares and do not have any predetermined dividend amounts.

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, the company said.
In the broader market, the BSE 30-share index Sensex ended 506.28 points up at 27,105.39.