Tata Motors to raise Rs 4,000 cr to buy Rover
The country's largest automobile maker Tata Motors said it has major growth plans for expanding its position in the domestic and global markets.Updated: Mar 11, 2008 20:14 IST
Country's largest automobile maker Tata Motors, which is currently in the final stages of talks for take over of Jaguar and Land Rover brands from Ford, on Tuesday said it planned to raise Rs 4,000 crore to part finance its expansion and acquisition activities.
"The Board of Directors of Tata Motors, at its meeting held today, has in principle approved, subject to other approvals as may be required, raising of additional long term resources up to Rs 4,000 crore by issue of appropriate securities in foreign or domestic market," the company said in a statement.
Asked if the move was necessitated by the imminent acquisition of JLR, a company spokesperson said: "The funds are being raised to part-finance overall funding requirements to meet some of the strategic plans."
The company said it had major growth plans for expanding its position in the domestic and global markets in both commercial vehicle and passenger vehicle business.
"This will be achieved by upgrading and enhancing the company's product portfolio, expanding manufacturing facilities in India and strategic acquisitions or alliances in India and abroad," the company added.
Whilst this may require incurring expenditure for organic growth over the next 3-4 years, the acquisition opportunities will have to be financed upfront, it said.
In the recent past, both Tata Motors and Ford have maintained that there were no major roadblocks in the JLR deal, and both parties were working toward a final agreement, which is expected "early this year".
Tata Motors said the funds would be raised by issuing securities in one or more tranches on terms to be decided by the Board/Committee of Directors in due course as also the consequent increase in the authorised capital.