Tata Motors has soared 5% to Rs 187 on reports that the company is looking to raise $750 million (Rs 3,675 crore) through the external commercial borrowing (ECB), to meet working capital requirements and reduce debt.
This will be the second big-ticket fund raising the company could do this year after it made a bond issue of Rs 7,500 crore ($1.6 billion) for Jaguar and Land Rover. India’s largest automotive company, had a consolidated net automotive debt (excluding vehicle financing) of Rs 14,500 crore as of June, the newspaper report suggests.
Last month, Jaguar and Land Rover (JLR) and Tata Motors announced a plan to spend $561 million towards building an engine plant in central England. The two brands will collectively spend £1.5 billion over the next five years on new product development and expansion of engine range.
A combined around five million equity shares have changed hands on the counter till 1011 hours.