Wednesday, October 14, 2009
Tata raises cash to pay off debts
Tata Motors has raised $750m (£469m) from investors and says it will use the funds to repay debt from the purchase of Jaguar Land Rover.
The company said it had received an enthusiastic response to the sale of shares and bonds that may be converted into shares.
But the news caused the company's stock to fall by 6.7%, which was the biggest drop since August.
Tata bought Jaguar Land Rover from Ford last year for $2.3bn.
In a statement, Tata said it had met its initial fundraising target of $600m within one hour.
The success of the sale was "a significant milestone", according to vice chairman Ravi Kant.
The company had already repaid back much of the $3bn loan it had taken out to finance the purchase of the two premium car marques.
DATED: 14.10.09
FEED: AW
