India Watch : Tata Motors to raise up to $1 billion by selling securities?

Automotive News Europe/Bloomberg, 19th August, 2010

MUMBAI (Bloomberg) – Tata Motors Limited, the owner of Jaguar and Land Rover, has hired Credit Suisse Group AG and Citigroup Inc. to raise as much as $1 billion from selling securities, two people with knowledge of the matter said.

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, India’s best-performing benchmark stock in the past year, said in June it plans to raise as much as 47 billion rupees ($1 billion) to pare debt and expand operations. Standard & Poor’s on Aug. 13 raised its rating on the automaker’s debt for the first time in two years as the global economic recovery boosted sales 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. Adam Harper, a spokesman for Credit Suisse in Hong Kong, couldn’t immediately be reached for comment. Debasis Ghosh, a spokesman for Citigroup in Mumbai, declined to comment.

The automaker may sell shares, convertible bonds and other securities in India or overseas, Tata Motors said on Aug. 10. The funds may be raised at one time or in separate tranches, the company has said. Investors also approved a proposal to raise borrowing limits for the automaker.

[Source: Automotive News Europe/Bloomberg]

Clive Goldthorp

About the Author:

Clive claims that his interest in the BMC>MG story dates back to his childhood in the 1960s when the family’s garage premises were leased to a tenant with an Austin agency. However, back in the 1920s and 1930s, his grandmother was one of the country’s first female Garage Proprietors so cars probably run in his genes! Admits to affairs with Alfa Romeos, but has more recently owned an 06/06 MG TF 135 and then a 15/64 MG3 Style… Clive, who was AROnline’s News Editor for nearly four years, stood down from that role in order to devote more time to various Motor Racing projects but still contributes articles on as regular basis as his other commitments permit.

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