Tata Motors has issued a US$750m share offer for “long-term capital requirements” although the Indian manufacturer declined to be drawn on what these might be.
The automaker will launch a Qualified Institutional Placement (QIP) for a base amount of US$525m, comprising US$200m of ordinary shares and US$325m of ‘A’ ordinary shares, with an option to increase the size of the offering of the ‘A’ Ordinary shares to US$400m.
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The committee of directors today also said the size of the offering of the ‘A’ ordinary shares be increased from US$400m to US$550m. As such, the total size of the ordinary shares and ‘A’ ordinary shares placement would stand increased to US$750m.
“It [offer] has happened and it is viewed positively” a Tata Motors spokesman told just-auto.
“Tata has said it intends to use the proceeds primarily for debt reduction, capital expenditure, long-term working capital requirements, growth objectives and general corporate purposes.
Citigroup Global Markets India Private and Credit Suisse Securities (India) Private are acting as the book running lead managers for the offering.
