Tata Motors is to seek approval from its shareholders for a capital increase that could see the automaker raise INR47bn (US$1bn).

The manufacturer’s board met yesterday (28 June) and agreed to ask for shareholder approval by postal ballot for.

“The fund raising will be for meeting the company’s growth plans as well as for reducing the debt on its balance sheet,” Tata said in a statement.

“The timing and structure of the issues will be decided depending upon market conditions post shareholders’ and other approvals.”