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New Delhi: Tata Motors Ltd, India's top vehicle maker, said on Tuesday it would raise Rs41.5 billion ($935 million) through two rights issues that are expected to open around the end of September.
The company said it would offer one ordinary share at Rs340 for every six held to raise Rs21.9 billion.
It also said it would offer one 'A' ordinary share, which has different voting and dividend rights, for every six shares held, at a price of Rs305 to raise Rs19.6 billion.
Tata Motors said the proceeds would be used to make an early repayment on some of the short-term funding of its $2.3 billion acquisition of Jaguar and Land Rover from Ford Motor Co.
Shares fall
Tata Motor's shares, which have fallen more than 30 per cent since May 28 when the rights issue was announced, were trading 1.9 per cent down at Rs429.70 at 0903 GMT on Bombay Stock Exchange that was up 3.8 per cent.
The company, which plans to launch in October the Nano, billed as the world's cheapest car, had planned three rights issues to raise a total of Rs72 billion, but scrapped a part of the offering last month due to souring capital markets.
It has since said it would sell some investments in a phased manner preferably to group firms to make up for the shortfall.
Funds raised through share sales by companies in India in the first six months of 2008 fell 66 per cent from a year earlier to $5.85 billion hurt by falling stock markets, Thomson Reuters data showed.
The BSE share index is down more than a quarter this year.
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