Tata Motors has raised a sum of $750 million through global depository shares (GDS) and convertible bonds to repay the loan it had taken to acquire Jaguar and Land Rover (JLR). The company had taken a $3 billion loan in 2008 for the acquisition, and has already repaid the major part of it. The $750 million it has now raised comprises $375 million worth of GDS, at a price of $12.54 per share and coupon convertible notes worth the same amount, at a price of $100,000 per note. This comes just two days after JLR received a $277.7 million loan from the State Bank of India. Apart from repayment of debt, the proceeds will also be used on capital expenditure, working capital needs and other corporate purposes. Tata Motors’ Chief Financial Officer, Mr C Ramakrishnan said that the offering would augment the company’s long-term resources and give it the financial flexibility to pursue its strategic goals.
