Mumbai: The board of India's Tata Motors has approved a plan to raise $1 billion by issuing securities to fund growth and reduce debt, the company said on Monday.
Tata said in a statement it would raise 47 billion rupees ($1.0 billion) through a combination of equity shares, bonds, debentures and warrants in Indian and international markets in several tranches, as market conditions permit.
Tata - India's largest commercial vehicle maker and creator of the super-cheap Nano - had a consolidated net debt of 188 billion rupees ($4.1 billion) as of March 2010, down from 237.5 billion rupees ($5.1 billion) a year earlier.
The company also plans to ask shareholders to raise borrowing caps from 200 billion rupees ($4.3 billion) to 300 billion rupees ($6.5 billion).
Company executives have said they would like to expand their Jaguar Land Rover product portfolio, ramp up exports from India and push deeper into China.
