Tata Motors aims to raise Rs 4,000 crore to acquire Jaguar and Land Rover

Tata Motors aims to raise Rs 4,000 crore to acquire Jaguar and Land Rover

Tata Motors has said that they are now going to raise close to around Rs 4,000 crore from the market through issue of securities for the acquisition of British luxury brands Jaguar and Land Rover.

The deal is expected to be confirmed in the coming days as the company continues its talks with Ford.

These funds are going to be raised in India and overseas in one or more tranches. They would be used for expansion in India and abroad in addition to for strategic acquisitions and alliances.

A market analyst spoke about this new development: “Going forward, this would put certain stress on the company. The benefit of the expansion wouldn’t accrue in one year. That means, the profit won’t be commensurate with the upfront interest cost burden.”