Tata Motors increases $750 mn in share sale
A source with direct knowledge of the entire matter stated that Tata Motors increased $750 million in an institutional share sale after lifting the offering’s size on powerful demand. Tata Motors, the owner of the luxury Jaguar and Land Rover brand and the maker of Tata Nano, world's cheapest car, had earlier planned to make $525 million by issuing shares of $325 million. Earlier, in a statement, the company had said that it was raising the size of the offering of shares with various voting rights to $550 million.
Debasis Ray, Tata Motors spokesman stated that the issue had yet to be closed. He declined to comment further. The offer, overall, created orders for around $1.8 billion, said the source. Late on Friday, the company introduced the share sale with the goal of using proceeds for lessening debt and for growing its business, said the sources.
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Usually, the shares with various voting rights are given to protect the stake of founders in a company. These shares permit investors to gain higher dividends. On the other hand, in return they have to surrender the voting rights. Tata Motors was selling the shares with differential voting rights. This was 764 rupees each. The ordinary shares were priced at 1,074 rupees each according to the source.
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