A day after Tata Motors said that the company is yet to take a decision on how it plans to raise about Rs 4,700 crore,news reports suggested Thursday that the company has hired Citigroup Inc. and Credit Suisse Group AG to raise as much as $1 billion (about Rs 4,650 crore) from selling securities.
The news report quoted sources saying that the company may tap capital markets next month for raising the amount. The Mumbai-based company is considering options including a private placement,shares with differential voting rights and foreign currency convertible bonds,report quoted sources saying.
On June 28,2010,the board of the company had proposed,seeking shareholders approval through a postal ballot,for raising funds equivalent to about Rs 4,700 crore through a combination of issue of ordinary shares,A ordinary shares,convertible bonds,debentures,warrants or other equity linked instruments in the domestic and/or international markets in one or more tranches. Tata Motors’ spokesperson had told Fe on Wednesday. Tata Motors has not taken any decision. Any report,indicating any decision on the part of the company,is speculative.
The company’s shares were down by 0.72% to Rs 1,040.10 on Thursday on the BSE. In October last year,Tata Motors had raised $750 million (about Rs 3,488 crore) through global depository shares (GDSs) and convertible notes.
Last week,Standard & Poors raised its rating on the company’s debt for the first time in two years as the global economic recovery boosted sales at its luxury-vehicle unit – Jaguar Land Rover (JLR). Citigroup,was one of Tata Motors advisers on the Jaguar Land Rover (JLR) acquisition in March 2008,has since helped manage all its share sales.