Tata Motors to raise up to Rs 2,700 cr
Leading car maker Tata Motors is looking at raising up to Rs 2,704.07 crore through public borrowing, offering up to 13.5 per cent returns, as it struggles to finance its $2.3 billion purchase of British marquees Jaguar and Land Rover.autos Updated: Jan 12, 2009 15:27 IST
Leading car maker Tata Motors is looking at raising up to Rs 2,704.07 crore through public borrowing, offering up to 13.5 per cent returns, as it struggles to finance its $2.3 billion purchase of British marquees Jaguar and Land Rover.
In a public announcement, the company said regulations allowed it to raise up to Rs 772.59 crore from its shareholders and Rs 1,931.48 crore from general public totaling Rs 2,704.07 crore.
The company, which in December last year offered 10 per cent interest on a minimum public deposit of Rs 20,000 for a year, 10.5 per cent for two years and 11 per cent for three years, is offering an additional 0.5 per cent for investments by senior citizens, its shareholders and and employees. When contacted by PTI, a company spokesperson said: "This is an open ended scheme with no time limit. Investors can invest till the time company communicates the closure of the scheme."
Tata Motors is offering two fixed deposit schemes a quarterly income plan with interest ranging from 10-11 per cent on minimum deposits of Rs 20,000 and another cumulative deposit plan at similar rates but compounded quarterly, which offers yield up to 12.83 per cent for normal investors and 13.5 per cent for senior citizens, Tata Motors shareholders and employees.
The last time Tata Motors made public borrowings was in 1995. The company has been struggling to raise funds to replace the $3 billion bridge loan it had taken to acquire JLR, the transaction for which was completed last June. Last year, it had got board approval to raise up to Rs 7,200 crore separate rights issues to part-finance buyout of JLR. Its right issue, however, closed in October with a weak response, forcing the promoters to subscribe a major chunk thereby taking their holding to 42 per cent from 33 per cent.