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Tata Motors falls 6% amid fund raising plan

Shares of leading automaker Tata Motors on Thursday plunged over 6
per cent following the announcement of company's fund raising plans to
finance the buyout of UK's luxury brands Jaguar and Land Rover.

The scrip dropped over six per cent to an intra-day low of Rs 595.10
on the BSE in the morning trade, against its Wednesday’s closing price
of Rs 634.75.

It was trading down 6.10 per cent at Rs 596 on the BSE in the pre-noon
trade.

Yesterday, the company's board at its meeting had approved raising 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 dollars (nearly Rs 9,848
crore), which is expected to be completed shortly, Tata Motors said in
a filing to BSE.

In March, Tata Motors said it has entered into a definitive agreement
with US car maker Ford to purchase Jaguar Land Rover.

Yesterday, the company had also reported a marginal decline in its
consolidated net profit of Rs 2,167.70 crore for the year ended March
31, 2008, compared to the previous fiscal.

Tata Motors' consolidated total income stood at Rs 35,918.96 crore for
the year, against Rs 32,514.38 crore in the previous fiscal.

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