New Delhi: Leading car maker Tata Motors is looking at raising up to Rs2,704.07 crore through public borrowing, offering up to 13.5% returns, as it struggles to finance its $2.3 billion purchase of British marquees Jaguar and Land Rover.
In a public announcement, the company said regulations allowed it to raise up to Rs772.59 crore from its shareholders and Rs1,931.48 crore from general public totaling Rs2,704.07 crore.
The company, which in December last year offered 10% interest on a minimum public deposit of Rs20,000 for a year, 10.5% for two years and 11% for three years, is offering an additional 0.5% for investments by senior citizens, its shareholders and and employees.
When contacted by PTI, a company spokesperson said: “This is an open ended scheme with no time limit. Investors can invest till the time company communicates the closure of the scheme.”
Tata Motors is offering two fixed deposit schemes -- a quarterly income plan with interest ranging from 10-11% on minimum deposits of Rs20,000 and another cumulative deposit plan at similar rates but compounded quarterly, which offers yield up to 12.83% for normal investors and 13.5% for senior citizens, Tata Motors shareholders and employees.
The last time Tata Motors made public borrowings was in 1995. The company has been struggling to raise funds to replace the $3 billion bridge loan it had taken to acquire JLR, the transaction for which was completed last June.
Last year, it had got board approval to raise up to Rs7,200 crore separate rights issues to part-finance buyout of JLR. Its right issue, however, closed in October with a weak response, forcing the promoters to subscribe a major chunk thereby taking their holding to 42% from 33%.