Tata Motors raises $450 million in foreign currency convertible securities
Domain-b — June 21, 2007

Tata Motors has raised $450 million through issue of Foreign Currency Convertible Alternative Reference Securities (CARS) in the international markets.

The $450 million is excluding the green shoe option and Tata Motors said, "Application will be made to list the CARS on the Singapore Stock Exchange."

The funds will meet product development expenditure and other corporate projects, the company said in filing with the Bombay Stock Exchange (BSE).

The issue is priced at an initial conversion price of Rs960.96 per share, Tata Motors said in the filing.

CARS would be convertible, into either qualifying securities, ordinary shares or American depositary shares. Besides the outstanding CARS, if any, at maturity would be redeemable at a premium of 31.82 per cent of the principal amount, Tata Motors said.

The initial conversion price of Rs960.96 per share, is at a 40 per cent premium to the company's closing share price on the National Stock Exchange as of June 20, it added.

Citigroup is the sole global coordinator with JP Morgan being the joint book runner for the issue.

Tata Motors 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 in the segment.