Tata Motors to raise $983 million in Japanese depository receipts
02 April 2008
Mumbai: Tata Motors Ltd is planning a listing on the Tokyo Stock Exchange to raise over 100 billion yen ($983 million) in Japanese depository deposits, the Nikkei daily reported.
Japanese depositary receipts would allow the company to access the Japanese capital markets without going through a normal listing procedure and allow Japanese investors to invest in the Tata Group.
The yen-denominated Japanese depositary receipts, the Japanese version of American and other depositary receipts, which trade like shares, will become tradable on the Tokyo Stock Exchange.
Investors can trade in depository receipts through brokerage houses. Tata Motor depository receipts are expected to attract individual investors.
Last year Japan opened the way for companies from countries like India and Taiwan, which are not allowed to directly list on overseas stock exchanges to issue depository receipts for getting listed on Japanese stock exchanges.
Tata Motors will be the first Indian company to list on the Tokyo Stock Exchange through the issue of a depository receipt.
Tata Motors, India's top vehicle maker, is raising funds to finance its $2.3 billion acquisition of luxury brands Jaguar and Land Rover from Ford Motor Co.
Tata Motors last month signed a $3 billion one-year bridge loan deal with a consortium of banks. It is also raising additional long-term funds of up to Rs4,000 crore ($1 billion) for expansion.