Tata Motors sells $400 mn convertible bonds

By siliconindia   |   Tuesday, 20 April 2004, 19:30 IST
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HONG KONG: Tata Motors Ltd, India's top truck and bus maker, has sold convertible bonds worth $400 million to fund product development, possible acquisitions and working capital, bankers close to the deal said on Tuesday. Tata Motors sold $100 million of five-year and $300 million of seven-year convertible bonds through JPMorgan, Merrill Lynch, Morgan Stanley and Citigroup. The five-year, zero coupon tranche can be be converted into Tata ordinary shares or its global depository shares (GDSs) at Rs 573.106 each, a 17.5 per cent premium to the share's closing price of Rs 487.75 on the Bombay stock exchange on Monday. The seven-year, one per cent coupon notes can be converted into Tata ordinary shares or GDSs at Rs 780.40 each, a 60 per cent premium to Monday's closing share price.