The company has been struggling to raise long-term funds to replace the bridge loan. In July 2008, it had got Board approval to raise up to Rs 7,200 crore through separate rights issues. Subsequently, it came up with two separate issues to raise Rs 4,147 crore, which met with cold response from investors and the promoters had to subscribe and increase their stake to 42 per cent from earlier 33 per cent.
Tata Motors then borrowed from public, first time since 1995, which it termed as an ongoing requirement, in December, 2008, offering up to 11 per cent annual interest for a period of up to three years. Tata Motors is in discussions with banks to refinance the remaining $2 billion due by end-May, and will make necessary announcements at the appropriate time.
India's largest truck and bus maker, Tata Motors Ltd, is in advanced negotiations with banks and financial institutions, including Life Insurance Corp. of India(LIC), to raise between Rs2,000 crore and Rs3,000 crore through nonconvertible debentures (NCDs). The money will be used to repay part of the $3 billion (Rs15,150 crore today) bridge loan the company took to buy Ford Motor Co.'s marquee brands Jaguar and Land Rover for $2.3 billion last January. About $2 billion of the loan amount is due by June.
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Tata Motors then borrowed from public, first time since 1995, which it termed as an ongoing requirement, in December, 2008, offering up to 11 per cent annual interest for a period of up to three years. Tata Motors is in discussions with banks to refinance the remaining $2 billion due by end-May, and will make necessary announcements at the appropriate time.
India's largest truck and bus maker, Tata Motors Ltd, is in advanced negotiations with banks and financial institutions, including Life Insurance Corp. of India(LIC), to raise between Rs2,000 crore and Rs3,000 crore through nonconvertible debentures (NCDs). The money will be used to repay part of the $3 billion (Rs15,150 crore today) bridge loan the company took to buy Ford Motor Co.'s marquee brands Jaguar and Land Rover for $2.3 billion last January. About $2 billion of the loan amount is due by June.
Windows Live™: Keep your life in sync. Check it out.
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