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Shares of Tata Motors were down over 2% at Rs 591 on concerns that the company's equity capital would increase post the huge rights issue planned by the company.
The auto major said it will seek shareholders’ approval to raise Rs 7,500 crore through a rights issue.
The company’s board of directors held a meeting in this regard on Tuesday. The rights issue will be for both classes of shares, Ordinary shares and ‘A’ Ordinary shares. The company has clarified that the proceeds would be used for its growth plans as well as for reducing debt.
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For the quarter ended December 2014, the company's paid-up equity capital stands at Rs 547.34 crore comprising of 273.67 crore equity shares of face value Rs 2/- each.
The stock opened at Rs 600 and touched a low of Rs 589. At 10:20AM, over 1.6 million shares were traded on both the stock exchanges.
