TML is planning to raise around a total of Rs 10,000 crore to finance its acquisition of Jaguar and Land Rover from US carmaker Ford for $2.3 billion. The company had made arrangements for funding the initial acquisition costs through bridge loans provided by a syndicate of banks. These loans would be repaid from the Rs 10,000 crore raised. Disclosing the fund raising programme decided by the TML board, the MD, Mr Ravi Kant, said they would raise about Rs 7,200 crore through three simultaneous but unlinked rights issues. Disclosing this in Mumbai after the board meeting, Mr Kant said there will be a rights issue of equity shares of upto Rs 2,200 crore, a rights issue of "A" class equity shares carrying differential voting rights of one vote for every 10 ‘A’ equity shares upto Rs 2,000 crore and rights issue of a five-year 0.5 per cent convertible preference shares (CCPs) upto Rs 3,000 crore.
These will be optionally convertible into ‘A’ equity shares after three years but before five years from the date of allotment. These funds will be mainly used for financing the JLR acquisition through a wholly owned subsidiary of Tata Motors in the UK. The acquisition will be completed in June, Mr Kant said and they would then take some action