India’s Tata Motors says it has raised AUD$830 million through the sale of new global depositary receipts and convertible bonds, money that will be used to help pay off debt incurred during the purchase of Jaguar and Land Rover.
The news isn’t all good however with that sum likely to make only a small dent in Tata’s total consolidated debt, a figure Reuters Newsagency estimates at some AUD$5.76 billion. Tata paid Ford AUD$2.77 billion for the Jaguar and Land Rover brands last year.
Tata originally planned to sell AUD$665 million worth of global depositary receipts, but upped that figure to AUD$830 million after receiving better-than-expected demand.
The news is encouraging to the automotive industry on the whole, particularly to Indian manufacturers, as the fund raising is seen as a sign of an improving global economy.
Indian manufacturers have raised nearly AUD$20 billion this year, triple the level seen last year.