Tata Motors raises $750 m to pay debt


Tata Motors on Friday raised $750 million from overseas markets to repay debt incurred for its acquisition of Jaguar Land Rover from Ford Motor Company of US in 2008. It has issued 29.9 million new equity shares in the form of Global Depository Shares (GDS) at a price of $ 12.54 per GDS aggregating $ 375 million and 3,750 Convertible “Notes”  due 2014 at a price of $100,000 amounting to $ 375 million, the company said. The aforementioned GDS and notes together aggregating $ 750 million will be listed on the Luxembourg Stock Exchange, it added.

Tata Motors initially wanted to raise funds from international markets to roll over a $ 3 billion bridge loan it had obtained to pay for the acquisition of two luxury brands.  However, it could not do so because of the global recession. As such, the offering assumes importance considering it was executed against the backdrop of continued volatile equity market.

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