Tata Motors To Raise Rs. 2500 Cr To Repay Debt
Tata Motors is planning to raise Rs.2500 Cr through GDR’s, foreign currency convertible bonds (FCCBs) or QIP.
The fund will be used to repay its debt and improve its debt-equity ratio.
In 2008, Tata Motors which bought British brands Jaguar-Land Rover (JLR) for about $2.3 bn in 2008 from Ford Motor, has been looking to raise funds to payoff a large portion of its debt of Rs.18,800 Cr. Of this, Tata Motors is to repay around Rs 8,000 Cr debt this year.
Tata Motprs is also planning Rs.2,500 Cr capex, which will largely be met by cash flows.
Its debt-equity ratio is now 1:2.05 and the company wants to cut it to 1:1.
Last October, the company had raised $750 mn by selling GDRs and convertible notes to repay debt taken to buy JLR. It had taken a $3-billion bridge loan to finance the acquisition and meet its working capital requirement.
Transaction Reference: ET
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 13/10/10 | Tata Motors - QIP | IPO / Offerings | 750.00 | |
| 09/03/10 | Tata Motors-Daimler- Exit | M&A | Citigroup Global Markets (Mauritius) Private Limited | 429.00 |
| 21/10/08 | Tata Motors - GDSs | IPO / Offerings | 750.00 | |
| 18/09/08 | Tata Motors Rights Issue | IPO / Offerings | 936.07 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 03/05/12 | Private Equity | Monetary Authority of Singapore | Samvardhana Motherson Finance Limited | 41.72 | Completed |
| 26/04/12 | Private Equity | International Finance Corporation | ATC Tires Private Limited | 160.00 | Planned |
| 26/04/12 | Private Equity | Commercial Engineers & Body Builders Co. Limited | - | Completed | |
| 25/04/12 | IPO / Offerings | Samvardhana Motherson Finance Limited | 315.88 | Called Off |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Tata Motors Limited | Tata Group | Bombay House, 24 Homi Mody Street,Mumbai-400001 |
Mahindra & Mahindra Limited Ashok Leyland Limited International Cars & Motors Limited Daimler India Commercial Vehicles Private Limited Mahindra Reva Electric Vehicles Private Limited (Formerly Known As REVA Electric Car Company Private Limited) Urastun Metal Industries Private Limited |
www.tatamotors.com |
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