Tata Motors drops Rs 3,000-crore issue

Taking into account the “current situation in the capital market and the change in the level of prices in the stock markets”, it has decided to drop the issue of 0.5 per cent five-year convertible preference shares of a total amount of about Rs 3,000 crore. This share would have been convertible into ‘A’ ordinary shares at any time after 3 years but before 5 years from the date of allotment.In place of the issue of convertible preference shares, it has now proposed to raise the required resources by monetizing a part of the company's investments through a phased divestment of certain investments (preferably as inter-group sales wherever feasible) at prevailing market prices over the next 6 to 8 months. “The funds released

from such future divestments together with those already sold during the current financial year, will form part of the resources to be raised for repaying the bridging loan taken for the Jaguar-Land Rover acquisition,” it said.