Tata Motors plans to raise US$700m through an issue of shares with differential voting rights according to newspaper reports in India.
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The paper said the company has made presentations to foreign investors on the planned offering. A Tata spokesman told Reuters the company already had shareholders’ approval to raise about INR$47bn (US$1bn) through various instruments but no specific decision had been taken.
In 2008, Tata Motors had issued shares with differential voting rights to fund its acquisition of Jaguar Land Rover, although the issue was undersubscribed and had to be picked up by the founders and Tata group companies.
Reuters noted that 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.
