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

Article by Christian A., 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:

Comments

Recommended

If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries