Tata Motors on Monday said it plans to raise Rs 500 crore through issue of securities for which a committee of its board will meet on February 24.
Tata Motors’ board in its meeting held on October 25, 2019 had approved and authorised raising of additional funds up to Rs 3,500 crore through external commercial borrowings, listed, unsecured, rated, non-convertible debentures or any other form of borrowing or in any combination.
“We would like to inform you that the company is desirous of offering rated, listed, unsecured, redeemable, non-convertible debentures aggregating Rs 500 crore in two tranches…,” Tata Motors said in a regulatory filing.
The issuance is pursuant to the approval of the board of directors’ resolution passed at its meeting held on October 25, 2019, it added.
On the same date, the company’s board had also approved raising of Rs 6,500 crore from Tata Sons through preferential issue.
“In this regard is holding a meeting of its duly constituted committee of the board on February 24, 2020,” the company said.
The fund infusion by Tata Sons, the promoter of major operating companies of the Tata Group, into Tata Motors was aimed at helping the auto maker, whose domestic business was hit by slowdown that “significantly impacted sales volumes, profitability and cash flows and increased the net debt to unsustainable levels”.
Source: Business Standard