Indian heavy vehicle making leader Tata Motors that also manufactures cars and have a 20% participatory in total car market is going to be listed on Tokyo Stock Exchange as per Japanese daily ‘The Nikkei’ published this news on April 02, 2008.
According to ‘The Nikkei’, the daily business newspaper published on Wednesday, “Tata Motors Set For Japan's 1st Depository Receipt Issuance” describing that Indian Automobile giant Tata Motors is planning to introduce its shares as depositary receipt on Tokyo Stock Exchange to cover the hefty debt, which Tata Motors had borrowed during acquisition of two British Marques Jaguar and Land Rover from US Motor company Ford Motors Co.
However Tata Motors has yet to comment over this news. “Tata Motors is at this stage exploring various avenues for sourcing its long-term financing requirements and once finalised would make an appropriate disclosure. We have no further comments to add,” said the company spokesperson.
For taking over two esteemed British marques, Tata Motors has borrowed a hefty sum of nearby USD2.3-billion loan through ‘bridge loan’ as well as External Commercial Borrowing (ECB) and now Tata motors wants to convert this bridge loan into long term debt as well as to hike the loan up to USD 3.0-billion. For this Tata need long-term money and Japanese stock exchange has enough liquidity in the stock market.
Though Tata Motors has already issued the American Depository Receipts (ADRs) to be listed on New York Stock Exchange (NYSE). After the listing on the Japanese bourses, Tata motors will become the first Indian company to be listed in the Japanese Stock debut Market.
According to ‘The Nikkei’, “the firm is finalising plans to list the shares as early as summer”. “Tata Motors would raise close to 100 billion Yen ($983 million) in Japan through the depository receipts,” reported The Nikkei.
But, according to Japanese Stock Exchange Regulation, ‘no Indian or Taiwan company can directly list in the Japanese bourses”. For this, such overseas companies will have to launch DR’s (Depository Receipt) in the stock market.
After, including in the Tokyo Stock market, experts assumes that Tata Motors will attract many individual investors.
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