 "Tata Motors seeks approval to raise Rs 3000cr")
India’s biggest automobile maker, Tata Motors, will seek shareholders' approval at the upcoming annual general meeting (AGM) to raise Rs 3,000 crore through non-convertible debentures (NCDs) this year.
The fund-raising move will complement the company's previous decision to raise Rs 4,400 crore through NCDs for which it secured approval from shareholders at the last AGM.
Until May this year, Tata Motors has raised a total of Rs 600 crore through NCDs. The company intends to use the proceeds to fund ongoing capital expenditure and for general corporate purposes. The borrowings of the company as on March 31 total Rs 15,887 crore, of which outstanding NCDs total Rs 5,550 crore.
The company's net debt-equity ratio (on standalone basis) as on March 31 was 0.61:1. Tata Motors has lined up a capital expenditure of Rs 3,500-4,000 crore for the current financial year, which would entail the production and launch of new products such as Nexon (compact SUV or sport utility vehicle), Hexa (lifestyle SUV) and a compact sedan codenamed Kite 5.
Mahindra & Mahindra is also seeking shareholders' approval at its upcoming AGM to raise Rs 5,000 crore through issuance of securities on a private placement basis in domestic and/or international market.
