On Thursday shares of leading automaker Tata Motors dropped more than eight per cent following the announcement of company’s fund raising plans to finance the buyout øf ÙK’s luxury brands Jaguar and Land Rover. On the Bombay Stock Exchange, he scrip lost 9.43 per cent to an intra-day low of Rs 580 against its yesterday’s closing price of Rs 634.75. It finally settled 8.22 per cent lower at Rs 582.55, while over 6.69 lakh equity shares changed hands.
Yesterday, the company’s board at its meeting had approved rising of Rs 7,200 crore through three simultaneous rights issue. These fund raising proposals are mainly for financing the Jaguar-Land Rover acquisition for about $2.3 billion (nearly Rs 9,848 crore), which is to be completed shortly, Tata Motors said in a filing to the BSE. In March, Tata Motors had said that it entered into a definitive agreement with US car maker Ford to purchase Jaguar and Land Rover. The company had yesterday reported a marginal decrease in its expected net profit at Rs 2,167.70 crore for the year ended March 31, compared to the previous fiscal. But Tata Motors’ was expecting total income of Rs 35,918.96 crore for this year, against Rs 32,514.38 crore in the previous fiscal