Tata Motors to raise $700 mn in share sale

Tata Motors to raise $700 mn in share sale

Mumbai: Tata Motors plans to raise $700 million through an issue of shares with differential voting rights, the DNA newspaper reported on Thursday, citing industry sources.

Company officials from the leading Indian maker of trucks that also produces the premium Jaguar and Land Rover brands and the world’s cheapest car, the Nano, have made presentations to foreign investors on the planned offering, it said.

A spokesman for Tata Motors said: “We already have shareholders approval to raise about Rs47 billion ($1 billion) through various instruments. But there is no specific decision taken by the company."

In 2008, Tata Motors had issued shares with differential voting rights to fund the Jaguar Land Rover buy, but the issue was undersubscribed and had to be picked up by the founders and group firms of the Tatas.

The shares, normally issued to minority shareholders to protect the founders, had one-tenth the voting rights of ordinary shares but holders were entitled to a 5% higher dividend.