The offer has met with great success with bondholders representing 93% of the JPY bonds and 76% of USD series bonds respectively, opting to convert their bonds into ordinary shares. The company was able to extinguish debt worth $345 million of these bonds at current exchange rates, the company said in a press release.
The company has today allotted 26.64 million equity shares to the bondholders, who exercised the option to convert these bonds into ordinary shares during the offer period, it said.
Last week, in a move to pare its debt by $431 million (about Rs 2,000 crore), Tata Motors has asked holders of its convertible bonds to convert them into shares, American depository shares (ADSs) or global depository shares (GDSs) through an auction process, ahead of the conversion date.
Tata Motors had offered bondholders of their 0% JPY 11,760 million and 1% $300 million convertible bonds an option to convert their bonds into ordinary shares during a 5-day period from March 23 to March 29, 2010. In this period, bondholders could opt to receive a higher number of shares per bond. Bondholders, who did not participate, would continue with all the terms of their bonds prior to this one-off offer. The offer has helped improve the companys net worth, reduce indebtedness and enhance financial flexibility.