BANGALORE (Reuters) - Tata Motors, India's largest vehicle maker, plans to raise about $412 million soon through a sale of global depositary receipts to reduce its debt, the Mint newspaper reported on Monday.
Tata Motors is working with a group of investment banks including Japan's Mizuho Corporate Bank to raise 20 billion rupees, it said, citing merchant bankers and analysts familiar with the plan.
The company, which controls about 60 percent of the world's fifth-biggest truck and bus market, would raise the fund this month itself, the daily said.
A Tata Motors spokesman told Reuters the company was committed to lowering its debt, but would not comment on specific plans.
Tata Motors needs to raise an estimated $1 billion in fresh equity and asset sales to deleverage its balance sheet and cut its debt-to-equity ratio to reasonable levels, according to analysts.
The burgeoning debt has been largely related to the purchase of Ford Motor's marquee brands Jaguar Land Rover last year, for which it took a loan of $3.2 billion and other debt to keep the loss-making unit running.
Tata Motor's consolidated debt at the end of June stood at 240 billion rupees.
0 comments:
Post a Comment