MUMBAI: Tata Motors is raising Rs 4,000 crore to fund its growth plans, which include buying iconic brands Jaguar and Land Rover. The company's decision to raise these funds can be seen as a precursor to the much-awaited announcement about the acquisition.
For over two months, Tata Motors has been in discussions with Ford, which named the Indian company as the preferred bidder to acquire Jaguar and Land Rover.
While speculation is rife about when the formal announcement will be made, this move by Tata Motors to raise funds only indicates that the discussions are nearing a positive outcome.
The company's board, on Tuesday, approved raising Rs 4,000 crore through equity-linked instruments in the domestic, overseas or both markets.
The company's shares are listed on BSE and NSE and its American Depository Receipts (ADRs) are listed on the New York Stock Exchange.
The Jaguar Land Rover deal could cost Tata's about $2 billion. Sources close to the development said Tatas will use a mix of debt and equity to finance this buy.
