Tata Motors is planning to raise $700 million through an issue of shares with differential voting rights. The report says that company officials from the leading Indian auto maker have made presentations to foreign investors on the planned offering.
A spokesman for Tata Motors said, “We already have shareholders approval to raise about Rs 4700 crore ($1 billion) through various instruments. But there is no specific decision taken by the company.”
Earlier in 2008, India’s largest maker of trucks had issued shares with differential voting rights to fund the Jaguar Land Rover buy, but the issue was undersubscribed and had to be picked up by the founders and group firms of the Tatas.
In the earlier months of this year, Tata Motors returned debt worth $345 million by converting foreign currency bonds. It also accumulated $250 million by selling a 20% stake in group firm Telcon to its JV partner Hitachi Construction Machinery.