Tata Motors To Mop Up 1 Billion In Equity And Debt (28-Jun-2010)
By issuing securities to fund growth and reduce debt, Tata Motors decided to mop up $1 billion.
Meanwhile, Tata said it would raise 47 billion rupees ($1.0 billion).
This, it will do through a combination of equity shares, bonds, debentures and warrants in Indian and international markets in several tranches.
Tata is India''s largest commercial vehicle maker and creator of the super-cheap Nano.
It 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.
On the other hand, it is also planning to ask shareholders to raise borrowing caps from 200 billion rupees ($4.3 billion) to 300 billion rupees ($6.5 billion).
Earlier, it was said that Tata Motors is planning to boost the production capacity of mini-truck Ace and its family.
This will be done in expectation of rising demand.
Meanwhile, it is at present, exploring many possibilities.
This may include setting up a new facility in order to expand capacity and it is carrying out a study for the same.
Tata motors declined to give details by when the company will take a decision on expanding capacity.
It also dint say whether it will set up a new facility or add new lines to its existing unit at Pantnagar and also on the possible investment.
Moreover, it sold about 1.6 lakh units of the Ace family of light commercial vehicles (LCV) in 2009-10 and out of this, about 1.1 lakh units were its Ace goods carrier.
They, however, have a capacity of 2,50,000 for the Ace family at their Pantnagar plant.
They are very close to full capacity, given the sales trend of the Ace family.
In addition, Tata Motors sells 4 different variants of Ace in the Indian market which includes the popular last-mile carrier minitruck.
It also includes a passenger version of the vehicle, Magic.
On the other hand, the Ace was launched in May, 2005, as a mini-truck with a sub-one tonne payload.
The vehicle recorded sales of about 30,000 units, during 2005-06 while the next year it witnessed sales of the model growing by more than double to over 70,000 units.
On account of the downturn, Ace''s sales decreased to a little over 81,000 units in 2008-09 from about 89,000 units in 2007-08.
The company also exports the goods carrier to a few neighbouring countries, including Nepal and Sri Lanka.
Meanwhile, the market for sub-one tonne goods carriers in the LCV segment is very competitive.
Tata Motors and Mahindra & Mahindra (M&M) are the two major players in this segment.
M&M offers Maxximo and Gio in the sub-one tonne payload category, while Tata Motors is present with a range of vehicles on its Ace platform.
Tata Motors and M&M sold 1,21,403 units and 75,963 units respectively in the domestic market under the sub-3.5 tonne goods carrier category in 2009-10.
Earlier, Tata Motors reported a growth of 41 % in net sales in May to 56,779 units as compared to 40,196 units in May, 2009.
The domestic market sales for the auto major grew by 37.53 % in the month at 52,801 units against 38,392 units in the same month last year. Out of which the passenger vehicles sales in the domestic market stood at 31,475 units in May against 23,004 units in the same month of 2009, an increase of 36.82 per cent, the company said.
While the company said that the exports also increased twofold at 3,978 units over 1,804 units.
Meanwhile Tata Motors said the sales of Indica fell by 15 % to 8,468 units over May 2009.
In the commercial vehicles segment, domestic sales grew from 23,004 units to 31,475, up 36.82 %, while light commercial vehicle sales during the reporting month were at 17,615 units, a growth of 22 % over last year, and medium and heavy commercial vehicle sales stood at 27,017 units, a growth of 62 per cent compared with May 2009.
Cumulative sales (including exports) for the company for the financial year are 113,978 units, a growth of 47 % as against 77,714 units sold last year.
Top News Today
 Godrej Properties, Mumbai based real estate developer launched its new residential project Godrej Alpine in Mangalore. It aims to complete 499-apartment Godrej Alpine for occupation in 36 months. Godrej
 Mahindra & Mahindra, auto major has stopped the second phase of booking for its latest sports utility vehicle XUV500. It has received over 25,000 orders in a period of 10 days from January 25 to February
 Reliance Power, the Anil Ambani group company's 2,400-MW Samalkot plant in Andhra Pradesh is likely to be ready for electricity generation this fiscal. It will install six gas turbines at the plant having
|
International Stock News
 The US markets rose on Monday, sending the Dow industrials to their highest close since 2008, as Greece's government made progress on measures to secure international aid. Also, a Labor Department report
 The US markets made a mix closing on Thursday, as a drop in jobless claims fueled optimism about the economy and investors looked to the next day's employment report as the next indicator of the economic
 The US markets made a mixed closing on Tuesday, with the indices mostly slipping after US economic data failed to live up to expectation. The reports showed that American consumer confidence trailed estimates
|
|
|