Tata Motors plans to raise Rs 3,000 crore in the next 12 months through non-convertible debentures (NCDs) or rupee denominated non-convertible foreign currency bonds on a private placement basis.
The company will seek approval of shareholders to raise the sum at its upcoming AGM to be held on August 9.
"In continuation of its efforts to strengthen its capital structure, the company intends to augment the resources through a mix of internal accruals and long term borrowings," Tata Motors said in a letter to its shareholders.
It is proposed to issue NCDs and/or rupee denominated non convertible foreign currency bonds on a private placement basis aggregating up to Rs 3,000 crore, in one or more series/ tranches during the 12 month period from the date of the AGM, it added
The fund will be used for repayment of certain NCDs/term loans from banks and to fund part of the ongoing capital expenditure during the next 12 months as also for general corporate purposes, the company said.
Tata Motors said its borrowings as on March 31, 2016 aggregate approximately Rs 15,887.25 crore, of which outstanding NCDs aggregate to Rs 5,550 crore.
At the company's AGM last year, it had obtained shareholders' approval for borrowing up to Rs 4,400 crore by way of NCDs, which is valid for a period of one year from date of the said approval.
It has borrowed Rs 600 crore by way of unsecured NCDs up to May 2016.
