Tata Motors said it has raised 450 million dollars through issue of securities in the international market to meet product development expenditure and fund other corporate projects.
The company has priced its 450 million dollar issue of Foreign Currency Convertible Alternative Reference Securities (CARS) at an initial conversion price of Rs 960.96 per share, Tata Motors said in a communique to the Bombay Stock Exchange.
Tata Motors has raised 450 million dollar excluding the green shoe option and said, “application will be made to list the CARS on the Singapore Stock Exchange”.
CARS would be convertible, into either qualifying securities, ordinary shares or American Depositary Shares. Besides the outstanding CARS, if any, at maturity would be redeemable at a premium of 31.82 per cent of the principal amount, Tata Motors added.
The initial conversion price of Rs 960.96 per share, is at a premium of 40 per cent to Tata Motor’s closing share price on the National Stock Exchange as on June 20, it added.
The Issue was launched on June 21, and Citigroup acted as the sole global coordinator with JP Morgan being the joint book runner.
The committee of directors, at its meeting yesterday had given in principle approval, for raising 450 million dollars, excluding green shoe option, through the issue of appropriate securities in international markets.
The company plans to roll out more variants in the commercial passenger vehicle segment and plans to invest Rs 5,000-6,000 crore over the next three years in the segment.
Shares of Tata Motors were trading at Rs 695, up 1.18 per cent on BSE in morning trade.