Tata Motors shareholders have approved a proposal to raise Rs 7,500 crore via rights issue.
In a filing to the BSE, the company said 93.97 per cent of the shareholders voted in favour of the proposal through a postal ballot.
The Mumbai-based company intends to utilise Rs 7,500 crore to fund various activities, including introduction of more than 100 new commercial vehicles over next three years and passenger vehicles on new modular platform from FY 2016-17.
The company, which recently announced a voluntary retirement scheme for its workmen to cut costs, also intends to use the funds to expand in international markets.
The funds would also be used to strengthen capital structure by deleveraging the balance sheet to build financial flexibility; partly correct the accumulated mis-match between the long term sources and application of funds; meet issue expenses; and general corporate purposes,the company had said in an earlier regulatory filing.
Elaborating on the new product development plans in the commercial vehicle (CV) space, the company had said major actions planned included “over 100 new products/variants for domestic and international markets over the next three years, launch of the Ultra range of trucks and broadening the Prima portfolio for market competitiveness.”
Besides, the company is looking to develop a product portfolio in the passenger vehicles segment until 2020, with the introduction of two or three new products each year.
Other initiatives planned include eight improved and enhanced vehicles across five key brands over next two or three years and “products offered on a new modular platform from FY 2016-17”.
Tata Motors is also looking to add more than 40 new products over the next five years in the Jaguar Land Rover (JLR) business.
Further, it aims to increase JLR manufacturing capacity in the UK, expand operations in China, Brazil and potentially other markets and de-risking the business by setting up its own engine plant in the UK.
Besides, the company is looking at expansion of commercial and passenger vehicle operations in Thailand, Indonesia and South Korea as well as penetration of new export markets for India business, including Australia, the Philippines and Vietnam.
Tata Motors, the country’s largest automobile company, had registered consolidated revenues of Rs 2,32,834 crore in 2013-14.
Shares of the company today ended at Rs 573.85 apiece on the BSE, down 0.13 per cent from previous close.