Tata Motors, country's largest automobile company, on Wednesday announced that it has fixed right issue Price at Rs 450 per ordinary share, which includes premium of Rs 448 per ordinary share for its proposed Rs 7,500 crore rights issue.

"The board of directors of the company at its meeting held on March 25, 2015, has approved the terms of the proposed rights issue of ordinary shares of face value of Rs 2 each for the purpose of rights issue entitlement," Tata Motors said in a statement.

The company further said that the board has fixed right issue Price at Rs 450 per ordinary share and Rs 271 per 'A' ordinary share.

The above terms would be subject to the approvals of SEBI, Reserve Bank of India and all other appropriate authorities as may be necessary.

The buy-back of secured non-convertible debentures issued by the company in May 2009, maturity date being March 31, 2016, face value of Rs 1250 crores, 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.

Following the development, shares of company rose as much as 1.51 per cent to trade at Rs 541.00 apiece on BSE at 15:10 hours.