Tata Motors to raise $1 b

MUMBAI: Tata Motors on Tuesday said it was looking at further acquisition opportunities and strategic alliances in India and abroad and is seeking to raise $1 billion in debt or equity from the overseas market.

“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,” Tata Motors said in a notice sent to its shareholders seeking their approval on various issues such as fund raising plans.

Seeks shareholders’ nod

The company is seeking the shareholders’ consent for raising up to $1 billion through the issue of Foreign Currency Convertible Bonds (FCCBs) or equity shares in the international market, the circular said.

Besides, it has sought shareholders’ nod for raising the company’s borrowing limit to Rs. 20,000 crore ($5 billion). As part of its long term funding plans, it would raise Rs. 7,200 crore through three simultaneous but separate rights issues to part-finance its $2.3-billion buyout of Jaguar and Land Rover. The shareholders’ nod have also been sought to raise $500-600 million (Rs. 2,700 crore) in the international market, which would be out of the approval sought for $1 billion. — PTI