Debt burden: The Tata share sale is aimed at wiping out its debt
INDIA’S leading vehicle maker Tata Motors may raise $700m (£447m) through a share offering as part of a drive to cut its debt, a report said today.
Senior officials from the company, part of the tea-to-steel Tata Group, have made presentations to foreign investors and mutual funds about the offering, the DNA newspaper said.
Tata Motors, which owns the luxury Jaguar and Land Rover marques, said in June it would raise Rs47bn ($1bn/£638m) by issuing shares, bonds and other debt instruments after getting shareholders’ approval.
“We already have shareholder approval to raise one billion dollars through a variety of instruments,” a Tata spokesman told reporters.
However, he added, “no specific decision has been taken by the company on this (fund-raising) issue.”
The company has been on a push to raise funds to pay back its debt, which stood at around Rs200bn ($430m/£275m) as of June 30.
Last year, Tata Motors raised $750m (£479m) from investors and said it would use the funds to repay debt from the 2008 purchase of Jaguar and Land Rover for $2.3bn (£1.46bn).
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