Tata Motors plans more acquisitions; to raise $1 billion overseas
10 June 2008
Mumbai: Fresh from its $2.3 billion acquisition of Ford Motor's British luxury brands Jaguar and Land Rover, Tata Motors is seeking to raise a further $1 one billion in debt or equity from overseas markets to fund further acquisitions and/or strategic alliances in India and abroad.
"The company has major growth plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicles, including strategic alliances and acquisition opportunities," Tata Motors said in a note seeking shareholder approval for fund raising plans.
Tata Motors, part of the salt-to-software Indian conglomerate Tata Group, has sought shareholders' consent for raising up to $1 billion through issue of Foreign Currency Convertible Bonds (FCCBs) or equity shares in the international market.
The company has also sought separate consent from shareholders to raise $500-600 million (Rs2,700 crore) in the international market, although it would be part of the $1 billion proposed overseas debt issue.
Tata Motors has also sought shareholders' nod for raising the company's borrowing limit to Rs20,000 crore (about $5 billion).
The group, meanwhile, is raising Rs7,200 crore through three rights offers as part of its long-term funding plans and to part-finance its $2.3 billion buyout of British luxury brands Jaguar and Land Rover.
The Ratan Tata-led group, which has been engaged in a number of high-profile overseas takeover deals such as that of Anglo-Dutch steelmaker Corus, said it would continue to pursue growth plans in passenger and commercial vehicle segments through measures such as launch of new models and investment in manufacturing facilities and technology.