Tata Motors may raise Rs4,700 crore through securities sale: report
19 August 2010
Tata Motors Ltd, the owner of luxury brands Jaguar Land Rover and maker of the world's cheapest car, the Nano, has hired Citigroup Inc and Credit Suisse Group AG to raise as much as $1 billion by selling securities, according to a Bloomberg report citing two people with knowledge of the matter.
The carmaker may tap capital markets in the next month, the people said, declining to be named before a public announcement.
The Mumbai-based company is considering options including a private placement, shares with differential voting rights and foreign currency convertible bonds, they said.
Tata Motors, the best-performing stock in the benchmark Sensex in the past year, said in June it plans to raise Rs4,700 crore ($1 billion) to pare debt and expand operations. Standard & Poor's last week raised its rating on the automaker's debt for the first time in two years as the global economic recovery boosted sales at its luxury-vehicle unit.
The company hasn't determined how it will raise the funds, spokesman Debasis Ray said by telephone, declining to comment further. Citigroup's spokesperson in Mumbai declined to comment, while Credit Suisse couldn't immediately be reached for comment.
The automaker may sell shares, convertible bonds and other securities in India or overseas, Tata Motors said on 10 August. The funds may be raised at one time or in separate tranches, it has said. Investors also approved a proposal to raise borrowing limits for the company.