The Hindu Business Line : Tata Motors seeks to raise $1 b abroad

Mumbai, June 10 Tata Motors plans to raise $1 billion (Rs 4,300 crore) from the overseas markets, to meet its fund requirements, including for acquisitions. In a notice sent to its shareholders on Tuesday seeking their approval for the fund raising programme, Tata Motors said it will raise the money as long-term resources, in one or more tranches. A company spokesperson said about $500-600 million will be through securities and the remaining as debt.

A fortnight ago, when Tata Motors announced its annual results, the company said that it would raise about Rs 7,200 crore through three simultaneous rights issues and another $500-600 million from the overseas market to fund the $2.3-billion acquisition of Jaguar and Land Rover. Tata completed the acquisition of the British luxury brands on June 2. This acquisition was funded through internal accruals of $500 million and a short-term bridge financing facility of $3 billion from a syndicate of banks.

The company will also seek its shareholders’ approval to increase its authorised share capital to Rs 3,900 crore from Rs 450 crore, to provide for the fund raising plans.

“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,” the company said.

It has also sought permission to raise the borrowing limits to Rs 20,000 crore from Rs 12,000 crore. Its debt, as of March 31, is Rs 4,100 crore.

Tata Motors’ shares closed today at Rs 509.75, down from Monday’s close of Rs 519.75.