Companies like Principal Mutual Fund, DWS Investments International and Fidelity Investments amongst others have acquired minority stakes in Tata Motors through a qualified institutional placement offer. The auto giant is considered as the nation's biggest makers of commercial vehicles.

On Monday the auto major decided to increase its QIP of rights equity shares size in the tune of more than forty two percent amounting to a sum of seven hundred and fifty million dollars from the existing five hundred and twenty five million dollars.

This announcement was made by the firm in the beginning of this month when they saw many institutional investors lined up for acquiring stake in the company.

The response received by the firm has made the committee of directors to upsize its offering of ordinary shares to five hundred and fifty million from four hundred million.

The total amount of shares has gone up to seven hundred and fifty million which includes ordinary share and ordinary share placements. These facts were given to the Bombay Stock Exchange by the Auto major.

The A category ordinary shares do not carry as much as voting rights like two hundred million ordinary shares that have also been issued via QIP.

An auto analyst of First Global named Mitul Shah stated that the step taken by Tata motors to upsize its QIP has seen positive responds from the market.

The shares of the auto giant saw a growth of one decimal eight five percent and closed at one thousand one hundred and thirty nine rupees and six paisa per share on Monday in the Bombay Stock Exchange.

The proceeds from the offer will be utilized by the firm to reduce its debts. It will also use the fund for its capital expenditure, growth objectives, long-term working capital requirements etc.