Mumbai: Tata Motors said on 21 June it has raised $450 million through issue of securities in the global market to meet product development expenditure and fund other projects.
The company has priced its $450 million issue of foreign-currency convertible alternative reference securities (CARS) at an initial conversion price of Rs960.96 a share, Tata Motors said in a communique to the Bombay Stock Exchange.
The conversion price is at a premium of 40% to Tata Motor’s closing share price on the National Stock Exchange as on June 20, it added.
Tata Motors said it will apply to have the CARS listed on the Singapore Stock Exchange.
The CARS would be convertible into either qualifying securities, ordinary shares or American Depository Shares. Besides the outstanding CARS, if any, at maturity would be redeemable at a premium of 31.82% of the principal, Tata Motors added.
The issue was launched on 21 June, and Citigroup acted as the sole global coordinator with JP Morgan being the joint book runner.
The committee of directors, at its meeting on 20 June had given in principle approval for raising $450 million, 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 will invest Rs5,000-6,000 crore over the next three years.
Shares of Tata Motors were trading at Rs 695, up 1.18% on BSE in morning trade.