Tata Motors up 5 pc on raising Rs 9,040 cr from rights issue

Stocks of auto major Tata Motors gained over 5 per cent today after the company raised Rs 9,040.56 crore from its rights issue.
The stock rose by 4.86 per cent to Rs 511.95 on the BSE.
At the NSE, it climbed 5.16 per cent to Rs 513.30.
The scrip was the top gainer among the BSE Sensex and NSE Nifty stocks.
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.