The Hindu Business Line : Tata Motors mulling Tokyo listing

Mumbai, April 2 Tata Motors is planning to list depository receipts (against underlying shares) on the Tokyo Stock Exchange, said a report in Japanese financial daily, The Nikkei. However, official sources of Tata Motors did not confirm the news. “Tata Motors is at this stage exploring various avenues for sourcing its long-term financing requirements and once finalised would make an appropriate disclosure. We have no further comments to add,” said the company spokesperson.

The company announced last week the acquisition of British marques Jaguar and Land Rover, which is expected to cost the company around $2.3 billion. In discussions with analysts tracking its stock, the company is reported to have talked of raising a bridge finance of $3 billion. The company had also then said that the bridge finance would be available for one year. The raising of long-term sources of funding such as depository receipts has to be seen in the context.

“The company is floating a special purpose vehicle for this purpose and this debt will not be in the books of Tata Motors,” said an analyst who was privy to the discussion.

Analysts are, however, divided about the choice of Japanese market for mobilising the money. “I don’t see any particular advantage in listing in Tokyo Stock Exchange,” said Mr Navin Matta, an analyst with Dolat Capital Market. However, another analyst who did not wish to be named said, “We cannot comment on the benefits unless we know the type of instruments. There is enough liquidity in Japanese market. That could be one reason”.

Tata Motors already has issued American Depository Receipts (ADRs), which are listed on the New York Stock Exchange.