Auto major Tata Motors will shortly be approaching the market regulator SEBI for permission for its Rs 7,200 crore rights issue.

"We are going through the process of offer document, SEBI and everything else. We will take a decision on the rights issue when the time is right. We are not planning delaying it," Tata Motors' chairman, Ratan Tata, told shareholders at the company's annual general meeting (AGM) here today.

To fund the acquisition of the Jaguar and Land Rover, Tata Motors is raising Rs 7,200 crore on rights basis and USD 500-600 million through an international offering of equity or cost-effective quasi-equity instruments.

"Today, we have had an opportunity to acquire a major international company. It has been a gutsy decision. I hope that we can over time, say that there was an opportunity to get an independent car company and make the acquisition and bring it into our fold," Tata said.

We took that opportunity and I hope that we can prove in the future that it was a justifiable decision," it added.

Shareholders raised concerns about the level of additional equity dilution.

"Today our equity is Rs 385 crore. Even if that increases by 50 per cent by way of new equity, we would be adding Rs 195 crore. This would give us an enterprise - JLR -having a turnover of Rs 60,000 crore (USD 15 billion) and profit of about Rs 2,500 crore, Tata added.