Tata Motors has revoked the proposed Rs 7,200-crore Rights Issue on Wednesday. The right issue was planned to acquire the Jaguar and Land Rover brands by TATA. The factors such as sliding stock markets and a steady decline in its share price have forced TATA group to roll back on the matter.

The company has also decided to scrap its proposed Convertible Preference Share issue of Rs 3,000 crore. The company will divest its investment in the next six to eight months. The funds from divest investment would be used for repaying the bridge loan taken for the JLR acquisition.

TATA motors’ has found its total investment at Rs 4,034.51 crore as per data up to March 31, 2008. The investment was Rs 2,281.55 crore in the previous fiscal. The company has invested Rs 395.73 crore in TATA steel, Rs 1,150 crore in Tata Motors Finance, Rs 224.10 crore in TATA technologies and Rs 245.41 crore in Tata Daewoo Commercial Vehicle Co.

TATA shares dropped by nearly 33 per cent on the NSE on Wednesday. The stock closed at Rs 424 on the BSE before the announcement.