Tata Motors to raise $600 mn via GDR issue

The country's largest auto maker, Tata Motors, today said it will raise up to $600 million (about Rs 2,783 crore) through issue of securities in the international market.     

"The company has today launched an issuance of GDS (Global Depository Shares) and convertible notes for an aggregate amount up to $600 million, with an option to retain higher amount in the international market," Tata Motors said in a filing to the Bombay Stock Exchange.     

Shares of Tata Motors plunged five per cent, to a low of Rs 558.20, in the morning trade on the BSE.

Last month, Tata Motors sold 5 million shares in Tata Steel at an average price of Rs 473 a piece, aggregating to Rs 236.50 crore through open market transaction.     

The auto maker had in August approached public for the second time in a year to raise about Rs 1,500 crore via fixed deposit schemes, offering up to 9.88 per cent annual interest for a three-year deposit.     

In December 2008, it borrowed over Rs 2,000 crore from public for a period of up to three years as it was struggling to finance its $2.3-billion JLR buyout.