Tata Motors slips over 1% despite plans to launch Rs 7500 crore rights issue

NEW DELHI: Tata Motors Ltd slipped as much as 1.6 per cent in trade on Wednesday, even though India's biggest auto maker by revenue said it will launch its biggest ever rights issue, and the country's third biggest to pay for expansion and retire debt.

Tata Motors announced on Tuesday that it intends to offer additional shares to its shareholders and raise Rs 7,500 crore with the quantum, pricing and timing to be decided later, ET reported.

At 09:25 a.m.; Tata Motors was trading 1.4 percent lower at Rs 596. It hit a low of Rs 595.10 and a high of Rs 602.90 in trade today.

This will be Tata Motors' biggest ever rights offering and the country's third biggest after State Bank of India and Tata Steel.

Tata Steel, another Tata Sons group company, raised Rs 9,134 crore soon after acquiring UK steel maker Corus Group in 2007. A Tata Motors spokesperson declined to give more details on the plans.