Tata Motors raises Rs33.51bn via QIP offering

Tata Motors Ltd. said that its Board of Directors has approved the issue and allotment of 83,20,300 Ordinary Shares of Rs10 at a price of Rs1,074 per Ordinary Share and 3,21,65,000 'A' Ordinary Shares at a price of Rs764 per share, aggregating to Rs33.51bn. A duly authorized Committee of the Board of Directors of the Company has decided to close the bid for the Qualified Institutional Placement (QIP). Tata Motors raised the size of its QIP to US$750mn owing to higher demand from large institutional investors.



Late last week, Tata Motors had launched an issue of Ordinary Shares and ‘A’ Ordinary Shares that carry differential voting rights through the QIP route, for a base amount of US$525mn. The QIP originally comprised of US$200mn of Ordinary Shares and US$325mn of ‘A’ Ordinary Shares, with an option to up the size of the ‘A’ Ordinary Shares to US$400mn.

Citigroup Global Markets India and Credit Suisse Securities India are acting as the Book Running Lead Managers for the offering. Tata Motors intends to use the proceeds primarily for its debt reduction program, capital expenditure, long term working capital requirements, growth objectives, general corporate purposes and any other purposes as may be permissible under applicable law.