investors-back-tata-motors-innovative-cb

Investors back Tata Motors' innovative CB

The truck and auto manufacturer raises $450 million from the sale of "CARS" that are structured to limit the dilution for the Tata Group.
Indian car and truck manufacturer Tata Motors last night raised $450 million for capital expenditures and overseas investments from a convertible bond issue that was structured to minimise the potential dilution for the controlling shareholder.

This will be achieved by having the five-year, zero-coupon bonds convert into a security with different voting rights û potentially none at all û than the companyÆs common shares and which consequently will be non-fungible with the underlying stock. The company doesnÆt yet have any securities of that kind, but the term sheet suggests it is looking to do such an issue before the bonds become convertible in 4.25 years.

Indian metals and mining company Vedanta Resources last year made...
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