Tata Motors to raise USD 450 mn through CARS
Mumbai, June 21 (UNI) The USD 450 million capital raising programme of Tata Motors will be executed through the issue of Foreign Currency Convertible Alternative Reference Securities (CARS).
In a communication to bourses, Tata Motors said it will make an application to list the CARS in Singapore stock Exchange. The issue will be made excluding green shoe option.
The capital raised will be for financing the company's future projects that focus on crucial segments like Commercial Vehicle Business unit and Passenger Car segment, and for other corporate purposes.
''CARS will be convertible, at the option of the Company, into either Qualifying Securities or ordinary shares or American Depositary Shares,'' said the notification.
CARS will be convertible at an initial conversion price of Rs 960.96 per share, which is at a premium of 40 per cent to the Company's closing share price on NSE on June 20. The Issue was launched before market trading hours on June 21.
Citigroup acted as the sole global coordinator to the issue with JP Morgan being the joint book runner.
Tata Motors, which is India's largest automobile company with revenues of USD 7.2 billion in FY 07, had recently launched ''Magic'' and ''Winger'' passenger vehicles eyeing the average consumer segment in domestic market.