Tata Motors Gains as Board Fixes Rights Issue Price

Shares of Tata Motors jumped as much as 2.3 per cent to hit intraday high of Rs 545.40 after the board approved rights issue at Rs 450 per share.

 

The board of directors of the company fixed the issue price of the rights issue at Rs 450 per share which was at a steep discount to the current market price.

 

Proceeds from the rights issue would be used reduce debt and enhance capital expenditure of the company.

 

Meanwhile, Tata Motors' luxury brand Jaguar Land Rover launched new variant of its luxury sedan Jaguar XF in London. Globally the car will be launched at  New York Auto Show next week. The new generation XF will replace the current XF in 2016.

 

Currently the Jaguar brand is in its most profitable phase and the new variant of the XF will help Jaguar ramp up volumes in the key markets.

 

The shares of Tata Motors ended 1.6 per cent higher at Rs 541.