Tata Motors prices FCCB at 30% premia

Ranbaxy too goes overseas to raise $400 million.

Tata Motors on Thursday announced the price of its foreign currency convertible notes aggregating to JPY11.76 billion (approximately Rs 450 crore).

The notes will be convertible at a price of Rs 1,001.39 per share, 30 per cent premium over yesterday's close of the stock on the Bombay Stock Exchange.

The holders of the notes, which are expected to be listed on the Singapore Stock Exchange, have the option to convert them into either ordinary shares or American depository shares.

The notes are zero coupon and will be redeemable at a discount of 0.15 per cent after five years. The company has an option to redeem the notes after three years, subject to the receipt of relevant approvals.

Citigroup acted as the sole book runner to the Issue.

Tata Motors has informed the stock exchanges that the offer will not be for sale in the United States. Ranbaxy, the country's largest phrama company, also announced its plans to raise $400 mllion from foreign markets.

In addition, the company will also issue up to $40 million bonds. Ranbaxy's bonds have a tenure of five years and one day, and are convertible into equity shares at a premium of 60 per cent over yesterday's closing of Rs 447.70 on the BSE.

The yield-to-maturity of the bonds is set at 4.8 per cent per annum. Citigroup, Deutsche Bank, Morgan Stanley and UBS were the bookrunners to the transaction.

"The proceeds from the offering will be used towards potential acquisitions and to finance our capital expenditure program," said Malvinder Mohan Singh, chief executive officer and managing director, Ranbaxy.