The Hindu Business Line : Tata Motors to raise nearly Rs 9,770 cr to fund JLR

MUMBAI: Leading auto maker Tata Motors on Wednesday said that it plans to raise up to Rs 9,770 crore through a host of fund raising initiatives, primarily to finance the $2.3 billion buyout of British luxury brands Jaguar and Land Rover (JLR).

The company plans to raise about Rs 7,200 crore through three simultaneous but separate rights issues, including an issue of equity shares worth up to Rs 2,200 crore.

Tata Motors would raise about Rs 2,000 crore through a rights issue of 'A' equity shares carrying differential voting rights of one vote for every 10 'A' equity shares and another Rs 3,000 crore from a rights issue of five-year 0.5 per cent Convertible Preference Shares (CCPs). The CCPs would be optionally convertible into 'A' equity shares after three years but before five years from the date of allotment.

On completion of the three rights issues, Tata Motors plans to raise about $500-600 million (approximately Rs 2,569 crore) through issue of securities in foreign markets. The fund raising proposals are mainly for financing the Jaguar-Land Rover acquisit ion for about $2.3 billion (nearly Rs 9,848 crore) which is expected to be completed shortly, Tata Motors said in a filing to BSE.

"Though the initial acquisition cost will be financed through bridging loans provided by a syndicate of banks, they would be fully repaid through the above mentioned capital raising schemes,'' the filing added.

The proposals were approved by the Board of Directors at their meeting today.

In March, Tata Motors said it has entered into a definitive agreement with US car maker Ford to purchase Jaguar Land Rover. - PTI

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