Tata Motors said on Wednesday the board of directors has approved Rs 75 billion rights issue. The company has fixed the issue price of two different types of shares at Rs 450 and Rs 271 a share for its proposed Rs 75 billion rights issue.

The company will offer a total of up to 150.64 million ordinary shares and 2,65,30,290 'A' ordinary shares.

For 'A' ordinary share, the price has been fixed at Rs 271 a share, including premium of Rs 269.

The company's board also approved buy-back of secured non-convertible debentures issued by the company in May 2009, maturity date being Mar. 31, 2016, face value of Rs 12.5 billion, as part of its Debt restructuring programme to ensure a healthy debt equity mix, balanced maturity profile, better terms that would include lower cost of debt.

Shares of the company gained Rs 3.4, or 1.09%, to trade at Rs 316.20. The total volume of shares traded was 93,238 at the BSE (3.27 p.m., Wednesday).