Tata Motors raises $750 million to pay down debt taken to buy Jaguar Land Rover

Article by Christian Andrei, on August 26, 2010

Tata Motors Ltd.'s decision to acquire Jaguar and Land Rover last year continues to haunt it but there appears to be relief in sight. Tata Motors raised $750 million by issuing global depositary receipts and convertible bonds to pay down debt from the $2.5 billion acquisition.

At the end of June, Tata Motors recorded a consolidated debt of about 240 billion rupees ($5.2 billion), says Autonews.

Tata Motors shares dropped as much as 5.5% on Friday to 555.25 rupees, underperforming a 0.4% drop on the benchmark Sensex index. A term sheet had stated the price of the new GDRs was equivalent to 580.35 rupees per common share.

Standard & Poor's analyst Suzanne Smith considers the development as very positive for the company. She added, But it all depends on ... whether it would be entirely used to reduce the debt.

Tata Motors said that the proceeds would repay the debt for the Jaguar Land Rover purchase and go toward capital expenditure, working capital and general corporate purposes.

Earlier, Tata Motors had pegged the amount to be raised at $600 million through the sale of GDRs and convertible bonds. After getting strong investor demand, it then chose to go higher for the fundraising.

If you liked the article, share on:


Login or Create new account to add a comment!


It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016