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]
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