Tata Motors has reportedly hired Citigroup, Inc (NYSE: C) and Credit Suisse AG (NYSE: CS) to raise as much as $1 billion from selling securities, according to a report from Bloomberg.
The automaker, which owns Jaguar and Land Rover, may tap capital markets sometime during the next month, according to the report which cited an anonymous source. The Indian automaker may consider options such as a private placement, shares with differentiated voting rights or foreign currency convertible bonds. The funds may also be raised either at one time or in separate tranches. According to the report, the company has not determined how it will raise the funds yet.
Tata Motors was the best performing stock in the benchmark index during the last 12 months and said in June that it plans to raise as much as $1 billion to cut back on its debt and expand operations. S&P raised the automaker’s debt rating for the first time in two years as the economic recovery boosted sales at the company’s luxury vehicles unit.
Citigroup is ranked first in arranging securities sales in India for 2010, according to data from Bloomberg. Credit Suisse is currently ranked 14tth in a market where companies have raised nearly 700 billion rupees this year.
Tata Motors posted a net income of 19.9billion rupees in the most recent quarter that ended in June, compared to a loss of 3.3 billion rupees a year ago. Ford Motor Co. (NYSE: F) is working with Tata Motors to increase the supply of engines for its Jaguar and Land Rover brands after the company saw higher than expected demand for the vehicles.
