To raise $1billion abroad; Hikes borrowing limit to Rs 20,000 crore; To seek shareholder's nod. After the successful acquisition of English luxury brands Jaguar and Land Rover, Tata Motors, the country's largest automobile maker, has said that it plans to raise an additional $1 billion in the international market to fund its expansion plans, which include strategic alliances and acquisitions.
In a release issued to the Bombay Stock Exchange (BSE) on Monday, the company stated that it will seek shareholder approval to increase its borrowing limit to Rs 20,000 crore from Rs 12,000 crore announced in the last AGM. The additional capital does not include the firm's temporary loans obtained or to be obtained from its bankers in the ordinary co urse of business.
"The company has big plans for expanding its product range and presence in the domestic and global markets in commercial and passenger vehicle, including through strategic alliances and acquisition opportunities," said the release.
The shareholder approval has also been sought for raising $500-600 million (about Rs 2,600 crore), which would be beyond the purview of the approval sought for raising $1 billion by issuing securities in the international market depending on market conditions.
The company recently completed the acquisition of Jaguar and Land Rover from US auto major Ford Motor Company (FMC) for $2.3 billion (Rs 9,500 crore). The acquisition was the largest overseas takeover by a domestic company in the automobile space. The brands recorded a combined turnover of nearly $15 billion and sales of 286,000 units in calendar year 2007.
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