MUMBAI: India’s biggest automaker, Tata Motors, said that company has planned to increase $1.2 billion (Rs75 billion) investment to boost capital.
Company will offer six shares for every 109 held at Rs450 apiece, according to an exchange filing. That’s a 15 per cent discount to the closing price on Tuesday. Holders of the so-called differential voting rights will be offered stock in the same proportion at Rs271 apiece.
Tata Motors has said it expects to spend about Rs40 billion annually at its India business over the next two to three years, and as much as £3.7 billion ($5.5 billion) a year over the same period at its Jaguar Land Rover unit on product development and expansion. The stock offering will help partly fund its plans.
Shares of Tata Motors rose 1.3 per cent to Rs539.10 in Mumbai. The benchmark S&P BSE Sensex Index advanced 0.02 percent. The automaker’s board also approved the buyback of non-convertible debentures valued at Rs12.5 billion.
Tata Motors’s India business has posted a loss in six of the past nine quarters amid weak demand for its trucks and passenger cars. It introduced new models called Bolt and Zest.
