Tata Motors will use a unique method to aggregate around Rs 4,200 crore. It will collect the money through two simultaneous and unlinked rights issues. The share holders of the company would be benefited by giving one share of both the issues for every six shares. The terms for right issues were cleared in the meeting of the Committee of Directors of the company on Tuesday.

An ordinary share would be issued at a price of Rs 305 per share of the face value of Rs. 10. It will help to aggregate Rs 1,961 crore for company.

The company will issue the offer within a month. The offer is being launched to collect the money to pay the loans, which it had taken to acquire Jaguar and Land Rover from Ford Motor Company in March.

The chairman of JM Financial and the lead manager to the issue, Nimesh Kampani said the company will offer differential voting rights to the shareholders. TATA would be the first company in India to offer differential voting rights.

The company will also disinvest some of its subsidiaries to collect an additional Rs 2,000 crore to Rs 3,000 crore. The proposed issue will be closed in the middle of October. The company will issue the new shares by October-end or early November.