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Tata Motors to raise Rs 6,500-cr equity via preferential shares allotment

At the end of September, net debt of the standalone entity was Rs 20,000 crore.

Shally Seth Mohile  |  Mumbai 

Brokerages slashed price targets on Tata Motors after the company reported biggest loss in India’s corporate history. The consensus 12-month price target for the stock is down to Rs 215 from Rs 252 earlier this month. Some brokerages have cut the tar
Brokerages slashed price targets on Tata Motors after the company reported biggest loss in India’s corporate history. The consensus 12-month price target for the stock is down to Rs 215 from Rs 252 earlier this month. Some brokerages have cut the tar

is to raise equity through a preferential allotment of shares to holding company The board of directors has approved the raising of Rs 6,500 crore through preferential allotment of ordinary shares and warrants to the promoter.

This will deleverage the balance sheet, paring debt of the standalone entity and allowing the business to focus on long-term strategy, besides rating support, said At the end of September, net debt of the standalone entity was Rs 20,000 crore.

The warrants will be convertible into ordinary shares after 18 months, with a fourth of the consideration to be brought in at the time of allotment. The issue price will be Rs 150, a premium of 11 per cent to the average closing price of the past five days.

First Published: Fri, October 25 2019. 23:15 IST
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