Tata Motors raises $750 million through GDRs and CBs

The fixed-price transaction by Indian car and truck manufacturer Tata Motors comes a day after Larsen & Toubro completed a similar combined deal comprising a QIP and a CB.

Tata Motors on Friday raised $750 million to repay debt that it took on in connection with its $2.3 billion acquisition of Jaguar and Land Rover last year. The Indian vehicle manufacturer sold a combination of global depositary receipts GDRs and five-year convertible bonds, using a similar structure to that used by Larsen Toubro LT a day earlier -- a CB that was attractively priced to pull investors into the deal, packaged together with an equity issue that came at a tight discount to the market because of the floor price restrictions.

Investors who subscribed to the Tata Motors' CB also had to subscribe to the GDRs on a one-to-one ratio, although...

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