NEW DELHI: Tata Motors have approved a proposal to raise Rs 7,500 crore through rights issue.
The company said 93.97 per cent of the shareholders voted in favor of the proposal through a postal ballot in a filing to the BSE.
The Mumbai based company intends to utilize Rs 7,500 crore to fund various activities, including introduction of more than 100 new commercial vehicles over next three years and passenger vehicles on new modular platform from FY 2016- 2017. The company, which recently announced a voluntary retirement scheme for its workmen to cut costs, also intends to use the funds to expand in international markets.
The funds would also be used to strengthen capital structure by deleveraging the balance sheet to build financial flexibility; partly correct the accumulated mis match between the long term sources and application of funds; meet issue expenses; and general corporate purposes, the company had said in an earlier regulatory filing.
Elaborating on the new product development plans in the commercial vehicle space, the company had said major actions planned included “over 100 new products variants for domestic and international markets over the next three years, launch of the Ultra range of trucks and broadening the Prima portfolio for market competitiveness.”
Other initiatives planned include eight improved and enhanced vehicles across five key brands over next two or three years and “products offered on a new modular platform from FY 2016-17”.
