Tata Motors increases QIP size to $750 mn

Tata Motors said on Monday it has increased the size of its institutional share sale to $750 million (over Rs 3,300 crore) from $525 million (over Rs 2,300 crore).

The company has raised the amount to be raised through qualified institutional placement due to the good response to the offer, Tata Motors said in a filing to the Bombay Stock Exchange.

Earlier, the company had planned to raise $325 million through the issue of ordinary shares, with an option to increase the size of the QIP issue to $400 million.

"In the view of the response received, the committee of directors on Monday authorised that the size of the offering of 'A' ordinary shares be increased from $400 million to $550 million," the filing said.

The total size of the QIP now stands at $750 million, the company added.

The company intends to use the proceeds primarily for reducing debt, capital expenditure and long-term capital requirements, among other things.

The shares are proposed to be listed on both the Bombay Stock Exchange and the National Stock Exchange. Citigroup Global Markets India Private Limited and Credit Suisse Securities (India) Private Limited are the Book Running Lead Managers to the offer.

Shares of Tata Motors were trading at Rs 1,137.95 on the BSE in afternoon trade on Monday, up 1.71 per cent from the previous close.