×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Tata Motors to raise Rs1,500 cr via FDs

Tata Motors to raise Rs1,500 cr via FDs
PTI
Comment E-mail Print Share
First Published: Wed, Aug 26 2009. 06 09 PM IST
Updated: Wed, Aug 26 2009. 06 09 PM IST
New Delhi: Within less than a year, the country’s largest auto maker, Tata Motors, has come to the public for the second time to raise about Rs1,500 crore via fixed deposit schemes, offering up to 9.88% annual interest for a three-year deposit.
In a public announcement, the firm on Wednesday said on a minimum fixed deposit of Rs20,000 for two and three years, it would offer 8% and 8.75% interest respectively under the quarterly income plan.
Under another scheme of cumulative deposit plan, Tata Motors, which met with cold response from investors to its two separate rights issues last year to raise Rs4,147 crore to partly fund its Jaguar and Land Rover deal, would offer 8.58% interest on a minimum deposit of Rs20,000 for two years and 9.88% for three years.
Though the company has not said how much it plans to raise through this exercise, sources close to the development said Tata Motors is likely to raise about Rs1,500 crore from the public. It would be a part of the company’s capex plan for the next few years.
As per Companies (Acceptance of Deposits) Rules, 1975, amended by the Companies (Acceptance of Deposits) Rules, 1978, Tata Motors could raise up to Rs3,030.26 crore from public, while it could have Rs1,212.10 crore from its shareholders.
In December 2008, it borrowed between Rs2,000 crore and Rs2,500 crore from public at an annual interest rate of up to 11% for a period of up to 3 years as it was struggling to finance its $2.3 billion JLR buyout.
In July last year, the company had got board approval to raise up to Rs7,200 crore through separate rights issues to part-finance the buyout of JLR.
Its right issue, however, closed in October with a weak response from the public, forcing the promoters to subscribe a major chunk thereby taking their holding to 42% from earlier 33%.
Tata Motors had suffered a net loss of Rs2,505.25 crore in 2008-09 mainly on account of JLR that it acquired in March 2008. The expensive JLR marquee suffered on account of the economic meltdown.
Comment E-mail Print Share
First Published: Wed, Aug 26 2009. 06 09 PM IST