Tata Motors hikes QIP size to $750 mn

Tata Motors has increased the size of its institutional share sale to $750 million (over Rs 3,344 crore) from $525 million (around Rs 2,341 crore). The company said that the increase in the amount to be raised through qualified institutional placement (QIP) is on the back of the good response to the offer,Tata Motors said in a filing to the stock exchange. The company’s shares closed at Rs 1,139.60 ,up 1.85 per cent on the BSE.

On October 1,Tata Motors had launched an issue of ordinary shares and ‘A’ ordinary shares through the QIP route,for a base amount of $525 million (around Rs 2,341 crore),comprising $200 million (around Rs 892 crore) of ordinary shares and $325 million (around Rs 1449 crore) of ‘A’ ordinary shares,with an option to increase the size of the offering of the ‘A’ ordinary shares to $400 million (around Rs 1,784 crore).

“In view of the response received,the committee of directors today authorised that the size of the offering of the ‘A’ ordinary shares be increased from $400 million (around Rs 1,784 crore) to $550 million (around Rs 2,452 crore). As such,the total size of the ordinary shares and ‘A’ ordinary shares placement would stand increased to $750 million (over Rs 3,344 crore),” the company said in a filing.