Shares of Tata Motors rose 10 percent on Monday after the company said it has decided to withdraw the non-convertible debenture (NCD) issue to raise up to Rs 1,000 crore, due to "tight market conditions".

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The company continues to have sufficient liquidity and would consider issuance of NCDs at an appropriate time and under normalised market conditions with necessary approvals, it said.

The stock rose as much as 9.99 percent to Rs 89.15 per share on the BSE.

"We hereby inform that the company has decided to withdraw the issue for private placement of unsecured NCDs in view of the higher cost expectations from the market participants due to the tight money market conditions," Tata Motors said in a regulatory filing.

On May 5, the company said a board-constituted committee had approved raising up to Rs 1,000 crore through issue of non-convertible debentures on a private placement basis.

It planned to raise the amount in three tranches of Rs 500 crore, Rs 300 crore, and Rs 200 crore. The first tranche was decided for a tenure of 875 days with redemption on 30 September and the other tranches were for the duration of 934 days and 965 days, respectively.